Investors Lose N303 Billion as Sell Pressures Dent Banking Index
Following a N633 billion loss last week, the Nigerian Exchange (NGX) experienced another round of selloffs on Monday, resulting in equities market investors losing more than N303 billion, primarily driven by sustained selloffs on banking stocks.
The bearish trading activities on the domestic bourse dragged equities market performance indicators downward by -0.52%. Consequently, year-to-date returns moderated, closely aligning with Nigeria’s 33.20% inflation rate for March.
Despite the release of Tier-1 banks’ impressive profit performances, financial stocks were not immune to selling pressure. The All-Share Index, or market index, dropped by 536.09 basis points, representing a decline of -0.52%, to close at 101,778.47.
Brokers attributed the market downturn to a high inflation reading of 33.20% for March 2024. Information from the local exchange revealed a significant decline in total volume and total value traded by -55.50% and -66.79%, respectively.
According to a market update from Atlass Portfolios Limited, approximately 326.64 million units valued at ₦7,169.20 million were transacted in 10,777 deals. UBA emerged as the most traded stock in terms of volume.
Thirteen percent of the total stock market trade volume involved transactions of UBA shares, followed by TRANSCORP, which accounted for 8.45% of total transactions. Other volume drivers included ACCESSCORP (7.55%), OANDO (6.95%), and FIDELITYBK (5.37%). In terms of value, MTNN was the most traded stock, accounting for 16.34% of the total value of trades on the exchange.
UPDC led the advancers’ chart with a price appreciation of 10.00%, followed by MORISON which gained +9.77%. Other gainers included NEM (+8.90%), DAARCOMM (+7.69%), OANDO (+6.77%), MBENEFIT (+5.26%), and four others.
Thirty-two stocks depreciated, with FIDELITYBK being the top loser, experiencing a price depreciation of -10.00%. Other stocks on the losers’ chart included JAIZBANK (-9.69%), GTCO (-7.73%), MAYBAKER (-7.38%), TRANSCORP (-6.35%), and ZENITHBANK (-3.38%).
At the close of the trading session on Monday, the market breadth was negative, recording 10 gainers and 32 losers. Additionally, the market sector’s performance was negative, with two of the five major market sectors closing in the red due to significant selloffs.
The banking sector recorded the highest decline, dipping by 3.83%, followed by a 0.51% decline in the insurance index. Conversely, the consumer goods, industrial, and oil & gas sectors closed flat.
Overall, the equities market of the Nigerian Exchange lost ₦303.19 billion, representing a drop of -0.52%, to close at ₦57.56 trillion.
