NGX Starts With N304 Billion Loss to Satisfy Market Analysts Predictions

The Nigerian stock market opened this week with a continuation of bearish sentiment. The benchmark indices at the Nigerian Exchange (NGX) indicated an average decline of 0.53%, equivalent to net capital depreciation of N304 billion.

It was reported that the NGX All Share Index (ASI), the value-based common index that tracks all share prices at the NGX, dropped from its opening index of 102,314.56 points to close at 101,777.12 points. The aggregate market capitalisation of quoted equities declined from its opening value of N57.865 trillion to close at N57.561 trillion.

Related News:

• Market Analysts Predict Bearish Continuation in This Week’s Trading

• Nigerian Stock Exchange Closes Q1 2024 With N158 Billion

• A Review on the Nigerian Stock Exchange Q1 2024

The decline was driven by widespread selloffs across the sectors, especially within large-cap banking stocks such as Guaranty Trust Holding Company (GTCO), Zenith Bank, United Bank for Africa (UBA) and Fidelity Bank.There were 10 gainers to 32 losers. 

Top Gainers: UPDC led the chart with 10% to close at N1.43 per share. Morison Industries followed with a gain of 9.77% to close at N2.81. NEM Insurance up by 8.90% to close at N10.40 per share.

Top Losers: Fidelity Bank led the losers chart with 10% to close at N9.00 per share. Jaiz Bank followed with a decline of 9.69% to close at N2.05. RT Briscoe declined by 8.47% to close at 54 kobo per share. GTCO lost 7.73% to close at N38.20 while Universal Insurance depreciated by 7.69% to close at 36 kobo per share.

DAAR Communication rose by 7.69% to close at 70 kobo while Oando appreciated by 6.77% to close at N13.40 per share.The total volume traded decreased by 55.50 per cent to 326.640 million shares valued at N7.169 billion in 10,777 deals. UBA led the activity chart with 42.254 million shares worth N1.109 billion. Transcorp followed with account of 27.562 million shares valued at N396.168 million. Access Holdings traded 24.62 million shares valued at N465.806 million. Oando traded 22.662 million shares worth N307.711 million, while Fidelity Bank traded 17.534 million shares worth N161.258 million.

Previously, top market analysts have stated that they anticipate the current trend of downturns in equity prices to continue as market fundamentals shift in the face of rising volatility, portfolio rebalancing, and investor and fund manager sector rotation.

The stock market is said to have also experienced low trade volume and value due to investors selling their stocks, despite the strong earnings performance reports from the top banks and the impressive payout ratio achieved by dividend growth thus far. This contributed to another week of bearish sentiment in the equities market.