Trading activities on the Nigerian Exchange Ltd. (NGX) concluded on a sour note this Tuesday, witnessing a substantial downturn as the market capitalization plummeted by N1.11 trillion. Notably, the market commenced at N57.560 trillion in capitalization but saw a significant decline of 1.93 per cent, settling at N56.447 trillion at the close of the trading session. This dip was mirrored in the All-Share Index, which experienced a 1.93 per cent decline or 1,969 points, closing at 99,808.34, down from Monday’s 101,777.12. Consequently, the year-to-date (YTD) return dipped to 33.48 per cent.
The negative trajectory of the market was largely attributed to sell-offs in telecommunications, particularly MTN Nigeria, and Tier-one banking stocks, including Guaranty Trust Holding Company (GTCO), FBN Holdings, Access Corporation, and Zenith Bank. The market breadth also reflected the bearish sentiment, with 27 stocks closing in the red and only seven recording gains.
Leading the pack of decliners were Cornerstone Insurance, Ellah Lakes, Fidelity Bank, Japaul Gold Group, and Vitafoam Nigeria, each shedding 10 percentage points to close at N1.71, N3.15, N8.10, N1.80, and N18.90 per share, respectively. Conversely, Morison Industries Plc emerged as the top gainer, surging by 9.96 per cent to close at N3.09, followed by Thomaswy with an 8.63 per cent increase to N2.14 per share.
Universal Insurance also saw notable gains, rising by 5.56 per cent to close at 38k, while Omatek added 3.80 per cent to close at 82k, and Secure Electronic Technology Plc advanced by 3.45 per cent to close at 60k per share.
Despite the prevailing bearish sentiment, trading activity witnessed an uptick compared to the previous session, with the value of transactions increasing by 16.91 per cent. A total of 403.89 million shares valued at N8.38 billion changed hands in 10,170 deals, marking a notable increase from the 326.64 million shares worth N7.17 billion exchanged in 10,777 deals previously.
Access Corporation led the activity chart with 62.93 million shares traded, valued at N1.07 billion. GTCO closely followed with 47.38 million shares worth N1.74 billion. United Bank of Africa (UBA) traded 45.63 million shares valued at N1.10 billion, Zenith Bank transacted 41.36 million shares worth N1.50 billion, and Fidelity Bank exchanged 23.14 million shares worth N189.36 million.
As investors recalibrate their strategies amidst market fluctuations, analysts anticipate continued volatility in the near term, with a focus on corporate earnings and economic indicators shaping investor sentiment moving forward.
Credit: News Agency of Nigeria (NAN) Text Excluding Headline
