Investor Confidence Wavers As NGX Records ₦170bn Dip Following Oando, First Holdco Decline

The Nigerian Exchange (NGX) witnessed a sharp decline in investor wealth on Tuesday, shedding over ₦170 billion in market capitalisation due to a wave of profit-taking in heavyweight stocks, notably Oando Plc and FBN Holdings (First Holdco).

Oando led the day’s losses, falling by the maximum 10% permissible on the exchange, while First Holdco dropped 4.2%. Their performance weighed heavily on the broader market, despite a 2.2% gain in MTN Nigeria shares and upward movement in Mutual Benefits Assurance.

Market data indicated that the NGX All-Share Index fell by 0.28%, or 328.08 points, settling at 114,910.16 at market close. Correspondingly, the total market capitalisation dipped by 0.23% to ₦72.50 trillion.

Stock analysts attributed the mismatch between the all-share index and market cap decline to the listing of 6.66 billion ordinary shares by Sterling Financial Holdings Plc at ₦4.00 each, part of its recent rights issue.

Despite the downturn in major indices, trading activity saw an uptick, with total volume and value increasing by 27.78% and 35.20%, respectively. Atlass Portfolios Limited reported that 787.31 million shares worth ₦25.67 billion exchanged hands in 23,170 deals.

ZENITHBANK led the trading volume chart, commanding 12.24% of total shares traded. GTCO followed with 10.60%, while UBA, ACCESSCORP, and ETI made up the rest of the top five. In terms of value, GTCO topped the chart, representing 24.34% of total trade value.

Among the day’s top gainers were CILEASING, MBENEFIT, and LEARNAFRCA, each appreciating by 10%. UPL rose by 9.82%, DEAPCAP by 8.64%, and LIVINGTRUST by 8.39%. Other notable advancers included SKYAVN and PRESTIGE.

On the flip side, TRANSPOWER was the day’s biggest loser, dropping 9.98%. Other laggards included OANDO (-9.97%), CUSTODIAN (-8.63%), UBA (-5.57%), FIRSTHOLDCO (-4.15%), and HONYFLOUR (-2.27%).

The market breadth ended negative, with 35 stocks closing lower versus 29 gainers. Sectoral performance was also broadly bearish, as the oil and gas sector fell 1.25%, consumer goods lost 0.50%, and banking shed 0.20%. However, the insurance and industrial sectors edged higher by 0.40% and 0.16%, respectively.