NGX slips as investors cut activity, naira strengthens to N1,326/$

Nigeria’s equities market edged lower on Tuesday as profit-taking in key stocks kept the NGX All-Share Index (ASI) in the red, while trading activity weakened sharply and the naira strengthened further to N1,326.69/$ at the Nigerian Foreign Exchange Market (NAFEM).

The NGX ASI declined 0.03 per cent to 246,019.17 points, trimming its year-to-date return to 58.10 per cent from 58.14 per cent in the previous session. Market capitalisation also shed 0.03 per cent to N158.91 trillion.

The marginal decline masked heavier movements across individual counters, with selling pressure in NASCON, Beta Glass and Academy outweighing strong gains in Tripple Gee, Sovereign Trust Insurance and Oando.

NASCON fell 10 per cent, while Beta Glass and Academy lost 9.99 per cent and 9.76 per cent respectively. On the other side, Triple Gee gained the maximum 10 per cent, Sovereign Trust Insurance rose 9.71 per cent, and Oando advanced 9.43 per cent.

Investor participation weakened considerably. Total volume traded fell 34.47 per cent to 426.84 million units, while transaction value dropped 30.25 per cent to N28.44 billion.

Access Holdings led trading by volume with 33.22 million shares, although its stock declined 5.23 per cent. Aradel remained the leading counter by value, recording transactions worth N4.14 billion.

Despite the negative headline index, market breadth was marginally positive, with 32 stocks gaining against 30 decliners, producing a breadth ratio of 1.07x.

The broader market therefore showed a relatively balanced distribution of gains and losses, even as investors reduced the volume and value of transactions.

The NASD over-the-counter market moved in the opposite direction.

The NASD Securities Index gained 0.85 per cent to 4,433.17 points, lifting market capitalisation by the same margin to N2.66 trillion. Its year-to-date return also improved to 25.10 per cent from 24.05 per cent.

Trading activity strengthened sharply, with volume rising 121.11 per cent to 1.16 million units and transaction value increasing 86.44 per cent to N103.73 million across 39 trades, up 69.57 per cent from the previous session.

SDG Fluid led the gainers with an 8.93 per cent increase, while SDA Friesland emerged as the sole decliner, falling 10.50 per cent.

The stronger domestic currency provided a more supportive backdrop for investors, with the naira appreciating 0.21 per cent to N1,326.69/$ at NAFEM.

The currency’s continued strength is likely to remain important for companies with significant foreign-currency liabilities or imported inputs, particularly as investors assess the impact of exchange-rate stability on earnings and operating costs.

Global markets are also entering a period of mixed signals.

US private-sector employment increased by only 38,000 jobs in August, down from a revised 46,000 in July and below expectations. Hiring was concentrated in education, healthcare, construction and hospitality, while manufacturing and professional services shed jobs.

Base pay still increased 3.2 per cent year-on-year, pointing to a labour market that is cooling but remains relatively resilient.

Oil markets, meanwhile, remain dominated by geopolitical risk. Crude prices edged higher following renewed US-Iran strikes and concerns over supplies through the Strait of Hormuz. US crude inventories also fell by a larger-than-expected 4.5 million barrels, providing additional support to prices.

However, alternative supplies and higher Iraqi exports could limit the upside.

For Nigerian investors, the latest session presents a mixed picture: the NGX remains near record territory with a 58.10 per cent year-to-date return, but trading turnover is losing momentum while the naira continues to strengthen