NGX Market Capitalisation Declined by N1.07 Trillion at the Close of January Trading Session

Investors at the Nigerian Exchange Limited closed January with the highest loss recorded for the year. Market capitalisation lost N1.07 trillion on Wednesday, January 31 2024.

This is the third loss the market recorded in January following sell-offs that dragged the market down—this month, almost all trading days finished successfully as the investors enjoyed the bullish trend.

On Tuesday, the market lost N857bn as the market cap closed at N56.43tn on the back of sell-offs that pushed the market down.

On January 10, the local bourse recorded its first loss in the New Year as the market cap dipped by about N638bn.

The market cap and All-Share Index depreciated by 1.89% to N55.357tn and 101,154.45 points, respectively.

Top Gainers: Tripple G and PZ Cussons gained 9.97%, while Geregu Power followed with 9.69%

Top Losers: May&Baker, Royal Exchange and Sterling Financial Holding Company Plc, which shed 10%.

Stocks of Transcorp Plc, United Bank for Africa and Geregu led the volume and value drivers of the day’s market trend.

The volume of equities traded was higher at 749.13 million shares, compared to the previous day’s volume of 648.95 million units valued at N22.49bn from 14,288 deals executed.

Speaking on the market performance, the Vice Chairman of Highcap Securities, David Adonri, said, “Investors are taking profits.

“Essentially, the investors left in the market are institutional investors who invest for the long term. So they are not bothered about the short-term volatility of the market.”

Back Story

Investors at Nigerian Exchange Limited experienced their first loss of the year. After the close of trading on Wednesday, the eighth consecutive day win experienced in the NGX market was cut short as a market capitalisation loss of N638bn to close at N44.885tn. This development comes a day after the market capitalisation crossed the N45 trillion milestone.

The NGX All-Share Index was above 80,000 points even after losing 1,167.46 points or 1.40%, to close at 82,024.38 at the close of Wednesday's trading session.

The second loss for investors at the Nigerian Stock Exchange was on Tuesday after the 13-day straight bullish trend was halted. Market capitalisation lost N856 billion following a decline from Dangote Sugar Refinery Plc and 60 others.

The NGX All Share Index declined by 1,564.52 points, which signifies a decline of 1.49%, to close at 103,110.15 points. Market capitalisation closed at N56.426 trillion after losing N856 billion.

The negative performance was impacted by significant losses recorded in medium and large capitalised stocks, including Dangote Sugar Refinery, NASCON Allied Industries, Guinness Nigeria, Lafarge Africa, and Flour Mills of Nigeria.