NGX Equities Investors Down N296bn Over Rising Sell Appetite

Stock Exchange Closes Trading Week With N30bn Gain

Due to persistent sell pressure, the stock market crashed on Monday, causing investors to lose over N296 billion in equity. The market performance was negatively impacted by sell pressure on SEPLAT (-10.0%) and UBA (-10.0%).

As a result, the performance of the stock market fell by 0.53%, and the year-to-date returns were reported at a lower 30.7%. Stockbrokers said that the bad performance of the equity market was caused by profit-taking in a few large- and medium-sized firms.

NASCON, TRANSCORP, UBA, and SEPLAT are the main causes of the significant daily loss that was announced on Monday. The market index, also known as the All-Share Index, closed at 97,709.38, down 524.86 basis points, according to statistics from the local exchange. On Monday, the year-to-date inflation rate also decreased to 30.7% amid forecasts that the second quarter of 2024 would see more increases in inflation.

Despite the bearish run, market activities inched high, according to data obtained from the Lagos exchange. Total volume and total value traded for today increased by +27.50% and +51.25% respectively.

In its market update, Atlass Portfolios Limited told investors that approximately 439.10 million units valued at ₦11,376.96 million were transacted in 8,607 deals. NOTORE was the most traded stock in terms of volume, accounting for 16.95% of the total volume of trades. Other volume drivers are: ACCESSCORP (9.81%), UNIVINSURE (8.73%), UBA (8.49%), and REGALINS (7.29%)

Stockbrokers also stated that NOTORE was also the most traded stock in value terms, with 40.89% of the total value of trades on the exchange. TIP topped the advancers’ chart with a price appreciation of 8.70 percent. Other gainers include TANTALIZER with (+8.70%) growth, STERLINGNG (+5.38%), IKEJAHOTEL (+5.37%), UPL (+4.65%), LIVESTOCK (+4.05%), and thirteen others.

Twenty-four stocks depreciated, according to market information obtained from the Nigerian Exchange platform. SEPLAT was the top loser, with a price depreciation of – 10.00%. Other losers are: PZ (-9.91%), ETRANZACT (-9.68%), NASCON (-7.50%), ROYALEX (-6.56%), and TRANSCORP (-4.37%).

Given the bearish direction, the market breadth closed negative, recording 19 gainers and 24 losers. In addition, the market sector performance was negative.

Stockbroking firms said in their separate reports that four of the five major market sectors spiral downward on Monday following negative weekly performance reported last week.

Stockbrokers said performance across the sectors mirrored the overall market sentiment, as the Oil & Gas (-5.9%), Banking (-0.8%), Insurance (-0.6%) and Consumer Goods (-0.3%) indices posted losses while the Industrial Goods index closed flat. Overall, equities market capitalisation declined by ₦296.42 billion to close at ₦55.27 trillion.

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