Investors lose N1.0trn as First HoldCo block trade weighs on NGX

Investors on the Nigerian Exchange Limited (NGX) lost about N1.0 trillion on Thursday as sustained profit-taking in banking stocks dragged the equities market lower despite a surge in trading activity driven by a massive block transaction in First HoldCo Plc.

Market capitalisation declined by 0.63 per cent to N158.34 trillion from N159.34 trillion, erasing approximately N1.0 trillion from investors’ wealth, while the All-Share Index (ASI) shed 1,617.91 points, or 0.66 per cent, to close at 245,362.26 points, down from 246,980.17 points recorded in the previous session.

The market’s year-to-date return moderated to 57.67 per cent, compared with 58.71 per cent previously.

The decline was driven by losses in major banking stocks, with Wema Bank Plc falling 5.65 per cent, First HoldCo Plc shedding 3.96 per cent, and Zenith Bank Plc declining 3.60 per cent. The losses outweighed gains recorded by Legend Internet Plc, which advanced 8.64 per cent, Sterling Financial Holdings Company Plc, up 6.67 per cent, and Fidson Healthcare Plc, which gained 2.80 per cent.

Trading activity strengthened significantly during the session as transaction volume surged 177.01 per cent to 2.10 billion shares, while the value of trades jumped 583.04 per cent to N230.83 billion.

First HoldCo Plc dominated market activity, accounting for 1.57 billion shares traded with transactions valued at N196.20 billion, reflecting a substantial block trade.

Market breadth remained negative at 0.42x, with 18 gainers against 43 losers, highlighting the broadly bearish sentiment across the market.

Legend Internet Plc emerged as the day’s top-performing stock after appreciating 8.64 per cent, while Tripple Gee & Company Plc led the losers’ chart with a 10.00 per cent decline.

Meanwhile, the NASD Over-the-Counter (OTC) market closed on a positive note as the NASD Security Index (NSI) advanced 1.46 per cent to 4,388.17 points, lifting market capitalisation by the same margin to N2.63 trillion.

The OTC market’s year-to-date return improved to 23.83 per cent, while trading activity strengthened sharply, with volume rising 1,096.61 per cent to 2.56 million units and transaction value increasing 494.94 per cent to N88.29 million across 38 deals.

In the foreign exchange market, the naira depreciated marginally by 0.001 per cent at the Nigerian Foreign Exchange Market (NAFEM) to close at N1,366.73/$1.

On the international commodities market, Brent crude fell 1.64 per cent to $86.55 per barrel, while West Texas Intermediate (WTI) declined 0.87 per cent to $82.33 per barrel, as renewed diplomatic efforts involving Oman and Iran over the Strait of Hormuz eased immediate supply concerns despite persistent geopolitical tensions in the Middle East.