NGX investors lose N270bn as sell-off deepens despite N34.5bn..

Nigerian equities investors lost about N270 billion on Wednesday as sustained selling pressure pushed the NGX All-Share Index down 0.17 per cent to 238,682.92 points, extending the market’s correction despite a sharp increase in trading value.

Market capitalisation fell to N154.14 trillion, from N154.40 trillion, while the market’s year-to-date return moderated to 53.38 per cent from 53.81 per cent in the previous session.

The sell-off was broad-based, with 41 stocks declining against 21 gainers, producing a negative market breadth of 0.51x.

JaizBank, Mansard Insurance and International Energy Insurance recorded major losses of 7.69 per cent, 7.56 per cent and 9.74 per cent, respectively.

Their declines outweighed gains in NEM Insurance, which rose 6.67 per cent, Linkage Assurance, up 5.62 per cent, and Dangote Sugar, which gained 1.47 per cent.

Fidson Healthcare recorded the biggest loss of the session at 9.99 per cent, while Neimeth International Pharmaceuticals emerged as the strongest gainer at 9.66 per cent.

Despite the bearish index performance, investors significantly increased their activity, with transaction value surging 44.90 per cent to N34.52 billion.

Total volume traded also rose 9.67 per cent to 733.35 million units, indicating heavier repositioning as investors continued to adjust their portfolios amid the prolonged correction.

First HoldCo led trading activity, accounting for 88.94 million shares by volume and N11.06 billion in transaction value, despite gaining 0.86 per cent.

The divergence between stronger turnover and a weaker benchmark suggests that investors remain active but are increasingly selective, with money changing hands heavily in individual counters while broader market sentiment remains negative.

The latest session extends the NGX’s recent slide after the benchmark index reached 248,529.75 points on August 10, with investors continuing to lock in gains accumulated during the market’s earlier rally.

The weakness was also reflected on the NASD over-the-counter market.

The NASD Securities Index declined 0.13 per cent to 4,284.06 points, while market capitalisation fell to N2.57 trillion and its year-to-date return eased to 20.89 per cent.

Trading activity on the OTC market collapsed, with volume plunging 98.74 per cent to 23,680 units and transaction value falling 80.48 per cent to N2.13 million across 21 trades.

No stock gained during the session, while SD Purple Real Estate fell 11.11 per cent as the sole decliner.

The continued weakness in Nigerian equities came despite another gain for the naira. The Nigerian Foreign Exchange Market appreciated 0.25 per cent to N1,343.59/$, extending the currency’s recent strengthening trend.

In global markets, US inflation remained above the Federal Reserve’s 2 per cent target for the 65th consecutive month, reinforcing expectations that the US central bank could remain cautious about further interest-rate cuts.

Oil prices, meanwhile, rose in a volatile session as investors assessed developments around talks involving Iran and Oman over the Strait of Hormuz, alongside a smaller-than-expected increase in US crude inventories.

For Nigerian equities investors, the key signal from Wednesday’s session was the combination of N34.52 billion turnover and a further N270 billion erosion in market value. The market remains liquid, but the direction of capital is increasingly defensive as investors continue taking profits and reassessing valuations.

The immediate test is whether stronger trading activity will eventually attract bargain hunters or whether the continued breadth of the sell-off will push the NGX deeper into its correction.