KEY POINTS

• NGX market capitalisation fell by ₦64 billion to ₦164.795 trillion on Friday.
• The All-Share Index declined by 0.04 per cent to 252,269.16 points.
• Despite the market decline, 22 stocks gained while 21 declined.
• Trading volume rose by 26.86 per cent to 3.70 billion shares.
• Linkage Assurance accounted for 83.90 per cent of shares traded by volume, while First Holdco led by value with ₦7.33 billion.

MAIN STORY

The Nigerian Exchange Ltd. (NGX) closed the week with a ₦64 billion loss on Friday as declines in several equities outweighed gains in other stocks.

Market capitalisation fell by 0.04 per cent, from ₦164.859 trillion at the opening to ₦164.795 trillion at the close.

The All-Share Index also declined by 97.64 points to 252,269.16, compared with 252,366.80 recorded at the previous session.

The market’s year-to-date return consequently eased to 62.11 per cent.

The decline followed profit-taking in stocks including Multiverse Mining, Livingtrust Mortgage Bank, Etranzact, Haldane McCall and Sovereign Trust Insurance.

However, market breadth remained positive, with 22 stocks gaining against 21 losers.

Caverton Offshore Support Group led the gainers, appreciating by 10 per cent to close at ₦4.40 per share.

Fortis Global Insurance followed with a 9.93 per cent increase to ₦1.66, while Austinlaz gained 9.91 per cent to close at ₦2.44.

Lasaco Assurance rose by 9.20 per cent to ₦1.90, while Veritas Kapital Assurance advanced by nine per cent to ₦1.09 per share.

On the losers’ table, Multiverse Mining led with a 9.90 per cent decline to ₦17.30.

Livingtrust Mortgage Bank shed 9.69 per cent to close at ₦2.33, while Etranzact fell by 8.11 per cent to ₦17.

Haldane McCall declined by 4.58 per cent to ₦3.33, while Sovereign Trust Insurance dropped by 3.52 per cent to ₦2.19 per share.

Trading activity strengthened during the session, with 3.70 billion shares exchanged in 27,205 deals valued at ₦23.11 billion. This represented a 26.86 per cent increase in volume.

Linkage Assurance dominated trading by volume, accounting for 3.10 billion shares, or 83.90 per cent of total shares traded.

First Holdco led by value, recording transactions worth ₦7.33 billion, representing 31.71 per cent of the total value traded.

THE ISSUES

Friday’s decline shows that a stock market can record a loss even when more shares advance than decline.

Although 22 equities gained against 21 losers, the combined value of the market still fell by ₦64 billion. This is because market capitalisation reflects the prices and number of shares of listed companies, not simply how many stocks rise or fall.

The size of the price movements and the market value of the affected companies also matter. A decline in a large company can outweigh gains recorded by several smaller companies.

The trading figures also reveal an important difference between the number of shares exchanged and the amount of money involved.

Linkage Assurance accounted for 83.90 per cent of total trading volume, with 3.10 billion shares changing hands. However, First Holdco recorded the highest monetary value, at ₦7.33 billion.

This means Linkage Assurance led by the quantity of shares traded, while First Holdco led by the total value of transactions. Neither figure alone indicates that the companies made profits or that their share prices increased.

The rise in trading volume also suggests that more shares changed hands during the session, even as the market’s overall value declined. Increased activity does not necessarily mean the market is gaining.

WHAT’S NEXT

Investors will be watching whether the market can recover from Friday’s decline and whether the recent gains in the year-to-date performance can be sustained.

The direction of major stocks, further profit-taking and trading activity will influence the market’s next sessions.

BOTTOM LINE

The NGX lost ₦64 billion on Friday despite having more advancing stocks than declining ones.

The combination of a slight market decline and higher trading volume shows that increased transactions do not automatically translate into market gains. The value of the shares being traded and the direction of their prices remain central to the market’s performance.