Bearish Season Hits NGX as Investors Lose N773 Billion in Tuesday Trading Session

Yesterday, investors at the Nigerian Stock Exchange closed in a red zone as stocks lost N773 Billion following investors' role in sell-offs. On Monday, the NGX lost N50.64 Billion after market analysts predicted before the start of the week that bearish sentiment would rule this week.

It was reported that the negative performance noticed in the market yesterday was driven by price depreciation in large and medium-capitalised stocks, which are MTN Nigeria Communications (MTNN), NASCON Allied Industries, FBN Holdings (FBNH), Nigerian Aviation Handling Company (NAHCO) and Multiverse Mining and Exploration.

The NGX All-Share Index declined by 1,412.64%, representing a loss of 1.39%, to close at 100,582.89 points. The market's year-to-date return declined to 34.52%. However, the market capitalisation value shed N773 billion to close at N55.038 trillion. 

As measured by market breadth, market sentiment was negative, as 27 stocks declined while 10 stocks gained. 

Related News:  

• Market Analysts Expects a Bearish Run This Week in the NGX

• Nigerian Stock Exchange Market Capitalisation Decline by N50.64 Billion

• CBN Sells $300 Million to Deposit Money Banks to Stabilise the Naira

Top Gainers: Omatek Venture and Africa Prudential led the chart with 9.86% each to close at 78 kobo and N7.80, respectively, followed by Juli with a gain of 9.73% to close at N2.82 per share.

Tantalizers appreciated by 8.11% to close at 40 kobo, while Ellah Lakes rose by 8.07% to close at N3.08 per share. 

Top Losers: FBN Holdings and Multiverse Mining and Exploration led the chart by 10% each to close at N30.60 and N15.30, respectively, while MTNN followed with a decline of 9.94% to close at N222.90 per share. McNichols declined by 9.79% to close at N1.29, while Consolidated Hallmark Holdings declined by 9.63% to close at N1.22 per share.

The total volume traded declined by 4.71% to 280.464 million units, valued at N6.120 billion, and exchanged in 9,141 deals. Transactions in Transnational Corporation (Transcorp) shares topped the activity chart with 44.412 million shares valued at N583.518 million. 

Access Holdings followed with 30.560 million shares worth N600.549 million, while United Bank for Africa (UBA) traded 26.514 million shares valued at N611.196 million.

Zenith Bank traded 24.957 million shares valued at N874.628 million, while NASON Allied Industries transacted 13.803 million shares worth N893.678 million.

READ ALSO: 2024 UNESCO Internship Program. Apply Now!

At the beginning of the week, Cowry Asset Management Limited said, 

• We anticipate the bearish sentiment to continue as the market seeks economic managers' catalysts and policy direction to trigger the positive sentiment.

• However, as we anticipate more corporate releases for the final quarter of 2023, investors will begin to rebalance their portfolio in their search for alpha amidst the rising fixed-income yields and outcome of the monetary policy meeting. Meanwhile, we continue to advise investors to take positions in stocks with sound fundamentals.