Following an N633 billion loss on Monday of last week, investors in the equities market lost another N303 billion as a result of persistent selloffs in banking stocks on the Nigerian Exchange (NGX).
The domestic stock exchange’s unfavorable trade activity pulled down performance metrics for the equity market by -0.52%. As a result, year-to-date returns started to decline once more, coming in close proximity to Nigeria’s 33.20% March inflation rate.
When the market learned about the enormous profit performance of Tier-1 banks, financial equities were still under pressure to sell. As a result, the market index, or All-Share Index, fell by 536.09 basis points. As a result, the market index, which finished at 101,778.47, decreased by -0.52%.
Brokers reported that a hot red inflation reading of 33.20% for March 2024 caused equities market activity to plummet. Information obtained from the local exchange revealed that total volume and total value traded dropped 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 was the most traded stock in terms of volume.
Thirteen percent of all stock market trade volume was made up of transactions involving shares of UBA, trailed by TRANSCORP, which accounted for 8.45% of the total transactions executed on the exchange.
Other volume drivers are ACCESSCORP (7.55%), OANDO (6.95%), and FIDELITYBK (5.37%). The market report revealed that MTNN was the most traded stock in value terms, accounting for 16.34% of the total value of trades on the exchange.
UPDC topped the advancers’ chart with a price appreciation of 10.00 percent. The company stock was trailed by MORISON which gained +9.77%. Other gainers are: NEM (+8.90%), DAARCOMM (+7.69%), OANDO (+6.77%), MBENEFIT (+5.26%), and four others.
Thirty-two stocks depreciated, according to market data cited by stockbrokers. FIDELITYBK was the top loser, with a price depreciation of -10.00%. On the loser chart are: JAIZBANK (-9.69%), GTCO (-7.73%), MAYBAKER (-7.38%), TRANSCORP (-6.35%), and ZENITHBANK (-3.38%).
At the end of the trading session on Monday, the market breadth closed negative, recording 10 gainers and 32 losers. Also, the market sector’s performance was negative. Stockbroker said two of the five major market sectors closed negative due to large selloffs.
The banking sector dipped by 3.83%, followed by a 0.51% decline in the insurance index.
On the other hand, the consumer goods, industrial, and oil & gas sector 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.
