NGX Loses Additional 6.6 Billion Amid Investors’ Selling Spree
The Nigerian Exchange (NGX) witnessed further losses as a wave of selling continued, particularly in newly listed companies and banking stocks. Aradel Holdings Plc topped the losers’ chart on Friday, alongside 21 other declining stocks, contributing to a cumulative drop in market performance.
The All-Share Index (ASI), a key performance indicator, dipped marginally by 0.01%, closing at 97,070.23 points, reflecting ongoing investor caution amidst a backdrop of rising headline inflation. This marks a further moderation in the year-to-date returns, as investors offloaded shares across various sectors.
Stockbrokers attributed the market downturn to significant sell-offs in medium and large-cap stocks, including Aradel Holdings, which contributed to a ₦282 billion decrease in investors’ wealth over the past three days.
Despite the negative trend, market activity showed signs of improvement. The total volume of shares traded surged by 49.95%, while the total value traded increased by a significant 86.66%. According to Atlass Portfolios Limited, approximately 358.85 million units, valued at ₦11.96 billion, were transacted across 6,719 deals.
JAPAULGOLD emerged as the most traded stock in terms of volume, accounting for 38.09% of the total trades. Other major volume drivers included UBA (10.77%), ZENITHBANK (7.79%), ACCESSCORP (7.65%), and FCMB (3.32%), completing the top five on the volume chart. In value terms, SEPLAT led the market, accounting for 41.84% of the total value of trades.
On the positive side, MCNICHOLS led the gainers’ chart with a 10.00% price appreciation, followed closely by UPL, which gained 9.41%. Other notable gainers included DAARCOMM (+9.09%), TRANSPOWER (+8.67%), and CILEASING (+8.29%).
However, the market saw twenty-two stocks record price declines. Aradel Holdings Plc posted the largest loss, with its stock falling by 9.99%. Other notable losers included DEAPCAP (-9.66%), JAIZBANK (-5.86%), ROYALEX (-4.23%), and Nigerian Breweries (-3.45%).
Overall, the market breadth closed even, with 22 gainers and 22 losers. Sector performance was mixed, with three out of the five major sectors recording gains. The Consumer Goods sector rose by 0.63%, followed by the Banking sector, which increased by 0.51%, and the Oil & Gas sector, which posted a marginal gain of 0.02%. Meanwhile, the Insurance sector dropped by 0.91%, and the Industrial Goods sector remained flat.
Despite some sectors showing resilience, the overall equities market capitalisation decreased by ₦6.61 billion, representing a slight dip of 0.01%, settling at ₦56.43 trillion. The market’s continued volatility underscores the challenges faced by investors amid inflationary pressures and global market uncertainties. NDDC Allocates 30 Billion to Boost SMEs in Nine Niger Delta States
