Stock Market Extends Downturn, Plummets by N256.05bn

Kayode Tokede

The stock market of the Nigerian Exchange Limited (NGX) dropped by N256.05 billion to extend its losing streak for the fifth consecutive session as sustained risk-off sentiment dragged the market lower.

The Nigerian Exchange Limited All-Share Index (NGX ASI) declined by 394.36 basis points or 0.16 per cent, to close at 250,273.50 basis points. Similarly, the overall market capitalisation value shed N256.05 billion to close at N162.496 trillion.

Sectoral performance was mixed as the Banking (-1.3per cent) index declined, while the Insurance (+0.5per cent) index advanced. Furthermore, the Consumer Goods, Industrial Goods and Oil & Gas indices closed flat.

The market negative performance was driven by price depreciation in large and medium capitalised stocks which are; First Holdco, Unilever Nigeria, Fidson Healthcare, Ecobank Transnational Incorporated (ETI) and Stanbic IBTC Holdings.

Investor sentiment was negative as 34 losers outpaced 26 gainers. Tripple Gee & Company recorded the highest price gain of 9.77 per cent to close at N2.81, per share. Livestock Feeds followed with a gain of 9.74 per cent to close at N10.70, while NPF Microfinance Bank up by 9.52 per cent to close at N4.60, per share.

Sovereign Trust Insurance appreciated by 8.23 per cent to close at N2.50, while Wapic Insurance rose by 7.69 per cent to close at N2.38, per share.

On the other hand, Critical Minerals Financing Corporation (CMFC) led the losers’ chart by 9.88 per cent to close at N3.65, per share. ABC Transport followed with a decline of 9.70 per cent to close at N6.05, while CWG dipped by 7.23 per cent to close at N19.25, per share.

Zichis Agro Allied Industries down by 6.58 per cent to close at N17.05, while Neimeth International Pharmaceuticals declined by 6.17 per cent to close at N7.60, per share.

The total volume traded declined by 33.8 per cent to 579.25 million units, valued at N36.07 billion, and exchanged in 41,072 deals. Transactions in the shares of Access Holdings topped the activity chart with 192.576 million shares valued at N5.781 billion. United Bank for Africa followed with 32.747 million shares worth N1.473 billion, while Zenith Bank traded 30.821 million shares valued at N4.185 billion.

Fidelity Bank traded 29.916 million shares valued at N691.686 million, while Guaranty Trust Holding Company (GTCO) transacted 19.564 million shares worth N2.596 billion.

Analysts stated that the session was characterized by bearish sentiment and weaker trading activity, as continued selling pressure pushed the market further into negative territory.

The decline reflects continued cautious sentiment and profit taking as investors remained reluctant to sustain the market’s recent gains.

Looking ahead, Imperial Asset Managers Limited said, “sentiment may remain cautious and stock-specific after a fifth consecutive decline in the ASI, with negative breadth and weaker turnover pointing to sustained near-term selling pressure.”

It also noted that the CBN’s September reset of the MPR to 23.0 per cent remains a supportive medium-term factor for equities as yields adjust, although liquidity conditions remain restrictive, saying that “near-term direction is likely to be shaped by bargain hunting in fundamentally sound names and positioning ahead of Q3 earnings, with several major companies scheduled to report later in October.”