Onome Amuge
The Nigerian Exchange (NGX) All-Share Index (ASI) experienced a downturn on Thursday, as equities investors collectively lost approximately N274 billion due to widespread profit-taking activities across the local bourse. This continued sell-off was particularly pronounced in several key stocks, with Transnational Corporation (TRANSCORP), Fidelity Bank Plc (FIDELITYBK), and Dangote Sugar Refinery Plc (DANGSUGAR) acting as major drags on market performance.
The NGX All-Share Index consequently registered a 0.4 per cent decline, settling at 109,183.02 points. Despite this daily retreat, the market’s month-to-date return stands at a positive +3.2 per cent, with the year-to-date return at +6.1 per cent, indicating a broader upward trend in the medium term. The overall market capitalisation of the Nigerian Exchange concluded the day at N68.62 trillion, a decrease of N273.50 billion from the previous session.
The market downturn was primarily propelled by sustained selling pressure across major sectors, reflecting a cautious investor sentiment that continues to respond to the Central Bank of Nigeria’s recent interest rate decisions.
According to analysts, these monetary policy adjustments have injected a degree of uncertainty, leading some investors to exit positions in select stocks.
Increased trading volumes despite declines
Despite the overall negative market sentiment, trading activity rose on Thursday. The total volume of shares traded increased by 146.39 per cent, while the total value of trades rose by 45.33 per cent.
According to an investor note from Atlass Portfolios Limited, approximately 1.64 billion units of shares, valued at N18.89 billion, were transacted across 25,927 deals, indicating a high level of market engagement despite the price corrections.
In terms of trading volume, Fidelity Bank Plc (FIDELITYBK) dominated the activity chart, accounting for a substantial 18.46 per cent of the total volume traded. It was followed by Japaul Gold & Ventures Plc (JAPAULGOLD) with 10.97 per cent, United Bank for Africa Plc (UBA) at 8.16 per cent, Tantalizer Plc (TANTALIZER) with 5.84 per cent, and FCMB Group Plc (FCMB) at 5.65 per cent, completing the top five most active stocks by volume. Reflecting its high liquidity, FIDELITYBK also emerged as the most traded stock in value terms, contributing 13.33% of the total value of trades on the exchange.
Sectoral weakness, key gainers/losers
The market breadth ultimately closed negative, with 22 advancing stocks against 33 decliners, underscoring the broad-based selling pressure. Sectoral performance mirrored this bearish trend, as four out of the five major market sectors recorded declines.
The Insurance sector bore the brunt of the losses, retreating by 1.68 per cent. This was followed by the Consumer Goods sector, which declined by 1.41 per cent, and the Banking sector, which fell by 1.08 per cent. The Industrial Goods sector experienced a more moderate decline of 0.01 per cent, while the Oil & Gas sector managed to close flat, showing resilience amidst the broader market correction.
Among the individual equities, Red Star Express Plc (REDSTAREX) topped the advancers’ chart with a notable price appreciation of 9.91 per cent. Other gainers included RT Briscoe Plc (RTBRISCOE) with +9.57 per cent, Sovereign Trust Insurance Plc (SOVRENINS) at +9.38 per cent, Custodian Investment Plc (CUSTODIAN) with +9.00 per cent, and eTranzact International Plc (ETRANSACT) up +7.94 per cent. FCMB Group Plc also posted a respectable gain of +6.45 per cent, alongside sixteen other stocks that recorded price appreciations.
However, the day’s losses were led by Chellarams Plc (CHELLARAM) and May & Baker Nigeria Plc (MAYBAKER), both of which suffered a price depreciation of -9.96% each. Other notable decliners included Omatek Ventures Plc (OMATEK) at -8.82 per cent, the aforementioned Fidelity Bank Plc (FIDELITYBK) down -6.97 per cent, Dangote Sugar Refinery Plc (DANGSUGAR) falling -5.91 per cent, Multiverse Mining And Exploration Plc (MULTIVERSE) by -5.56 per cent, and Wema Bank Plc (WEMABANK) retreating by -1.49 per cent.
