Key Points
- Market capitalisation fell by N137 billion to N154.396 trillion as the bearish trend continued.
- The All-Share Index declined by 0.11 per cent to 239,085.17 points, while 32 stocks recorded losses against 18 gainers.
- Trading volume and the number of deals increased, although the total value of transactions fell from Friday’s level.
Main Story
The Nigerian equities market extended its bearish trend on Monday as profit-taking in banking and insurance stocks pushed market capitalisation down by N137 billion.
Market capitalisation declined from N154.533 trillion at the previous close to N154.396 trillion.
The All-Share Index also fell by 265.99 points, representing a 0.11 per cent decline, to close at 239,085.17 from 239,351.16 recorded on Friday.
The decline reduced the market’s Year-to-Date return to 53.64 per cent, while market breadth remained negative, with 32 stocks recording losses compared with 18 gainers.
International Energy Insurance led the gainers, rising by 9.82 per cent to close at N3.49 per share.
Red Star Express followed with a 9.86 per cent gain to N16.15, while University Press advanced by 9.38 per cent to N5.25.
UPDC Real Estate Investment Trust gained 5.97 per cent to close at N3.55, while Haldane McCall rose by 3.90 per cent to N4.00. Sunu Assurances also gained 3.33 per cent to close at N3.10.
Neimeth International Pharmaceutical led the decliners, falling by 9.38 per cent to N7.25.
Fidelity Bank declined by 6 per cent to N18.80, while Guinea Insurance fell by 5.19 per cent to 73 kobo. NPF Microfinance Bank also declined by 4.82 per cent to N3.95.
The market recorded higher trading volume and more transactions than on Friday, although the total value of trades declined.
A total of 668.72 million shares valued at N23.83 billion were exchanged in 45,894 transactions, compared with 416.67 million shares worth N35.63 billion traded in 36,324 deals on Friday.
The Issues
The market’s decline was driven by selling pressure in banking and insurance stocks as investors took profits after previous gains.
Despite the increase in the volume of shares traded and the number of transactions, the lower value of trades indicates that the higher activity did not translate into stronger market value.
The negative market breadth, with significantly more decliners than gainers, also points to broad-based selling pressure during the session.
What’s Being Said
The source does not contain direct quotations from market analysts, investors or exchange officials. The reported market data show that profit-taking in banking and insurance stocks was the main factor behind Monday’s decline.
What’s Next
Investors will watch subsequent sessions to determine whether the selling pressure continues, particularly in banking and insurance stocks.
The market’s ability to recover will also depend on investor sentiment and the direction of trading in the stocks that contributed to Monday’s decline.
Bottom Line
The Nigerian equities market lost N137 billion on Monday as profit-taking weighed on banking and insurance stocks. Although trading volume and the number of deals increased, the market remained broadly negative, with 32 stocks declining against 18 gainers.
