NGX loses N550bn as First HoldCo, Fidelity lead sell-off

Nigerian equities investors lost approximately N550 billion in market value on Tuesday as renewed profit-taking in First HoldCo, Fidelity Bank and NGX Group pushed the NGX All-Share Index down 0.35 per cent to 241,611.23 points.

Market capitalisation fell to N155.97 trillion from N156.52 trillion in the previous session, while the market’s year-to-date return moderated to 55.26 per cent from 55.81 per cent.

The decline was driven largely by sell-offs in First HoldCo, Fidelity Bank and NGX Group, which fell 5.71 per cent, 6.59 per cent and 3.83 per cent, respectively.

The losses outweighed gains in Nigerian Breweries, Access Holdings and HMO Call, which advanced 1.47 per cent, 0.37 per cent and 9.97 per cent, respectively.

Market breadth remained weak, with 37 stocks declining against 22 gainers, producing a breadth ratio of 0.59x and indicating that selling pressure was broader than buying interest.

Red Star Express recorded the largest decline, falling 10 per cent, while HMO Call led the gainers with a 9.97 per cent increase.

Trading activity was mixed as investors remained active in value terms despite a sharp reduction in the number of shares traded.

Total volume fell 67.69 per cent to 429.84 million units, while transaction value increased 19.86 per cent to N27.48 billion.

Sterling Financial Holdings led trading by volume with 51.57 million units, while MTN Nigeria accounted for N9.76 billion in transactions, the highest value recorded during the session.

The sharp decline in volume alongside higher turnover suggests that trading was concentrated in selected high-value counters rather than spread broadly across the market.

The latest weakness extends the NGX’s recent correction after its strong rally earlier in the year, with investors continuing to lock in gains in major stocks.

The bearish sentiment also spread to the NASD over-the-counter market, where the NASD Securities Index fell 1.75 per cent to 4,348.76 points.

Its market capitalisation declined by the same margin to N2.61 trillion, while its year-to-date return moderated to 22.72 per cent from 24.90 per cent.

Trading activity on the OTC market weakened sharply, with volume plunging 82.56 per cent to 113,728 units and transaction value falling 12.35 per cent to N9.34 million across 31 trades.

No stock gained during the session, while SDCSCSPLC recorded the largest decline at 9.42 per cent.

The equities sell-off came despite another gain for the naira. The Nigerian Foreign Exchange Market appreciated 0.46 per cent to N1,343.32/$, extending the currency’s recent strengthening trend.

In the global market, US Treasury yields remained under pressure as investors demanded higher returns to compensate for concerns over the country’s rising debt burden and large fiscal deficits.

Crude oil markets remained focused on the conflicting positions of the United States and Iran over the Strait of Hormuz, with Washington saying the waterway was open after mines were removed while Iran maintained that it would remain closed until its conditions were met.

For Nigerian equities, the immediate concern remains whether profit-taking will continue to spread across heavyweight counters or whether renewed buying interest will emerge to stabilise the market after its recent correction.