NGX investors lose N294bn as sell-off drags market lower
Investors on the Nigerian Exchange Limited (NGX) lost approximately N294 billion in market value on Wednesday as renewed sell-offs in oil, consumer and banking stocks dragged the equities market down by 0.18 per cent.
The market capitalisation declined by N294 billion to N163.53 trillion from the previous session’s N163.82 trillion, while the All-Share Index (ASI) shed 0.18 per cent to close at 251,861.24 points, extending pressure on investors’ portfolios.
The downturn was driven largely by losses in Okomu Oil, which fell 10.00 per cent, Enamelware, down 9.96 per cent, and NASCON Allied Industries, which shed 8.99 per cent. Their losses outweighed gains in UPL, which advanced 9.89 per cent, Caverton Offshore Support Group, up 8.96 per cent, and Abbey Mortgage Bank, which gained 8.66 per cent.
Market breadth remained negative, with 32 stocks declining against 28 gainers, representing a breadth ratio of 0.88. Okomu Oil led the losers, while UPL topped the gainers.
Sectoral performance was predominantly bearish, with four of the five major indices closing lower. The banking index led the decline, shedding 0.60 per cent, followed by insurance, down 0.29 per cent, and consumer goods, which lost 0.15 per cent. The industrial index also recorded a marginal decline, while the oil and gas index gained 0.03 per cent to emerge as the sole advancing sector.
Trading activity weakened further, reflecting reduced investor participation. Total volume traded fell by 22.58 per cent to 418.35 million shares, while transaction value declined by 24.38 per cent to N22.83 billion. The number of deals also dropped by 1.47 per cent to 30,908.
Honeywell Flour Mills led trading by volume, accounting for 75.96 million shares, while Guaranty Trust Holding Company (GTCO) topped the value chart with transactions worth N4.57 billion.
In contrast, the NASD Over-the-Counter (OTC) Securities Exchange delivered positive returns, with its index advancing by 0.79 per cent to 4,341.81 points and market capitalisation increasing by 0.77 per cent to N2.59 trillion.
The performance lifted the NASD market’s year-to-date return to 22.91 per cent from 21.56 per cent, signalling continued gains for investors in the unlisted securities segment.
Trading activity also strengthened significantly, with volume surging by 2,868.39 per cent to 15.08 million units, while transaction value rose by 79.17 per cent to N62.28 million. Deals increased by 43.33 per cent to 43.
SDIGIPLC and SDRSOURCE led the seven advancing securities, gaining 10.00 per cent each, while SDNASDPLC and SDUBNPROP led the decliners, falling 10.00 per cent and 9.65 per cent respectively.
In the global commodities market, Brent crude rebounded by about three per cent on Wednesday after touching a two-month low in the previous session, as renewed tensions over Iran’s nuclear programme revived concerns about energy supply disruptions.
Iran’s security chief said Tehran would not allow enriched nuclear material to leave the country, while Washington maintained that nuclear issues must form part of any initial negotiations to end the US-Israeli war on Iran.
Meanwhile, global equity investors remained cautious amid the recent sell-off in United States technology stocks. The Nasdaq-100, which reached a record high in early October, has since shed about 10 per cent from its peak, leaving investors assessing whether the recent stabilisation signals a recovery or a temporary pause in the downturn.
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