NGX Bleeds Dry As Investors Lose N1.113Trn

Stock Exchange Closes Trading Week With N30bn Gain

The all-share index (ASI) of the Nigerian Exchange (NGX) fell below psychological levels of 100,000 points as a selling frenzy decimated the local stock exchange. Capitalization of the equity market also declined following eight days of consecutive daily losses.

Amidst intensifying fears about inflation, the market performance index fell by -1.94% as a result of persistent selling spree on banking stocks and other bellwethers. The most recent selloffs followed an excessive profit made during a recapitalization exercise by Nigeria’s leading lenders.

Stockbrokers reported that despite rising inflation conditions, investors’ attitude is shifting as fixed income yields start to draw attention.

The Nigerian Exchange said that the market index, also known as the All-Share Index, closed at 99,808.34, down -1.94%, or 1,970.13 basis points.

However, market activities increased, according to trading results, Total volume and total value traded grew by +23.65% and +16.91% respectively, Atlass Portfolios Limited told investors in its market update for Tuesday.

Citing details of trading activities in the local bourse, stock market players said approximately 403.89 million units valued at ₦8,381.63 million were transacted in 10,170 deals. Ticker: ACCESSCORP was the most traded stock in terms of volume, accounting for 15.63% of the total volume of traded on the Nigerian Exchange.

The largest lender by total assets was followed by GTCO (11.77%), UBA (11.34%), ZENITHBANK (10.27%), and FIDELITYBK (5.75%) to complete the top 5 on the volume chart. GTCO was the most traded stock in value terms, accounting for 20.80% of the total value of trades on the exchange.

MORISON topped the advancers’ chart on Tuesday with a price appreciation of 9.96 percent. The company which has continue to get higher market repriced was trailed by THOMASWY which gained +8.63%.

Other gainers are: UNIVINSURE (+5.56%), OMATEK (+3.80%), NSLTECH (+3.45%), VERITASKAP (+3.13%), and ABCTRANS (+1.43%). Due to seesaw movement in the local exchange, forty-nine stocks depreciated.

FIDELITYBK, VITAFOAM, CORNERST, ELLAHLAKES, and JAPAULGOLD were the top losers, with a price depreciation of -10.00% each.

Also on the loser chart are: FLOURMILL (-9.76%), OANDO (-9.70%), DANGSUGAR (-8.75%), ACCESSCORP (-8.63%), and UNILEVER (-7.79%). Given today’s trading direction, the market breadth closed negative, recording 7 gainers and 66 losers.

Stockbrokers reported that the market sector performance was negative, as four of the five major market sectors closed in red. The Banking index declined by -5.75% followed by the Insurance sector which dropped by -3.27%. The Consumer goods index lost -1.02%, and the Industrial sector tracked lower by 0.06%. The Oil & Gas sector closed flat.

Overall, equities market capitalisation declined by ₦1,113.47 billion, representing a drop of -1.93%, to close at ₦56.45 trillion.

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