Market Capitalisation Goes Down by N720 Billion Following Mid-Week Selloffs

Investors at the Nigerian Stok Exchange finished the mid-week in a red zone after investors engaged in sell-off activities, which led to a market capitalisation loss of N720 billion.

This is the third consecutive day the bearish trend lasted in the exchange, a loss of N1.54 trillion combined.

The All-Share Index and market capitalisation declined by 1.31% to 99,302.37 points, while market capitalisation closed on Wednesday with N54.32 trillion after closing at N55.038 trillion the previous day. The NGX year-to-date returns declined to 32.80%.

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Market breadth was negative, resulting in only five (5) stocks gaining while 52 declined. 

Top Gainers: PZ Cussons led the chart with a gain of 10% to close at N29.15, followed by Juli Plc, which gained 9.93% to close trading at N3.10 and Axa Mansard’s stock appreciated by 1.53% to close at N5.30 per unit.

Top Losers: FCMB Group, Lafarge Africa, and Nigerian Breweries led the chart with 10% each, decreasing their share prices to N7.20, N31.95, and N30.60.

Bearish sentiments were seen across various sectors, particularly in Banking, Insurance, and Consumer Goods, which witnessed declines of 6.90%, 3.72%, and 1.20%, respectively. Sell-sentiments in stocks such as Sterling Financial Holdings, Wema Bank, AccessCorp, United Bank for Africa, NEM Insurance, AIICO, NB, Dangote Sugar, and Honeywell Flour Mill pushed these declines.

Also, the Industrial Goods index declined by 0.41% due to adverse price movements in Lafarge Africa and CUTIX, while the Oil & Gas index remained flat.

On a positive note, trading activities on the local bourse were in the green zone, with improvements seen in total deals and traded volume rising by 15.40% and 41.28% to 10,549 deals and 396.23 million units, respectively.

However, the total traded value mirrored the bearish sentiment, declining by 4.80% to N5.83bn.

Transcorp Plc took the lead as the most traded security by volume, with 52.57 million units exchanged in 507 deals, while Zenith Bank topped the charts in traded value at N1 billion.

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Back Story

On Tuesday, 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.