Nigerian Exchange equities market sheds N256 billion as 34 stocks decline

KEY POINTS

• The Nigerian Exchange (NGX) equities market declined on Tuesday, with market capitalization shedding N256 billion to close at N162.495 trillion.
• The All-Share Index fell by 0.16 per cent, dropping 394.36 points to settle at 250,273.50.
• Market breadth closed negative with 34 losers outpacing 26 gainers, while overall trading activity weakened across volume and transaction metrics.

MAIN STORY

The Nigerian Exchange Ltd. (NGX) equities market experienced a downturn on Tuesday, shedding N256 billion amid broad-based profit-taking across 34 equities.

Market capitalization contracted by 0.16 per cent to close at N162.495 trillion, down from N162.751 trillion recorded during the previous trading session.

Concurrently, the benchmark All-Share Index decreased by 394.36 points, or 0.16 per cent, finishing the day at 250,273.50 compared to 250,667.86 previously. Consequently, the market’s year-to-date return moderated to 60.83 per cent.

Market breadth remained negative as 34 companies closed in the red against 26 advancing counters. Critical Minerals Financing Corporation led the losers’ chart with a 9.88 per cent decline to close at N3.65 per share.

ABC Transport followed, dropping 9.70 per cent to N6.05, while Computer Warehouse Group retreated by 7.23 per cent to settle at N19.25. Zichis Agro-Allied Industries and Neimeth International Pharmaceuticals also weighed on performance, falling 6.58 per cent and 6.17 per cent, respectively.

Conversely, Tripple Gee topped the gainers’ chart with a 9.77 per cent increase to finish at N2.81 per share. Livestock Feeds appreciated by 9.74 per cent to N10.70, and NPF Microfinance Bank rose 9.52 per cent to N4.60. Sovereign Trust Insurance and WAPIC also registered notable gains of 8.23 per cent and 7.69 per cent, respectively.

Trading activity weakened during the session. Total volume plunged by 33.82 per cent to 579.25 million shares, valued at N36.07 billion across 41,072 transactions. Access Corporation anchored the volume chart with 192.58 million shares traded, accounting for 33.25 per cent of total activity, while Aradel Holdings dominated trading value, contributing N7.63 billion or 21.14 per cent of the daily turnover.

THE ISSUES

1. Sustained profit-taking in key capitalized equities exerts downward pressure on key performance benchmarks despite an otherwise robust year-to-date trajectory.
2. Fluctuations in daily market liquidity and trading volume highlight shifting investor sentiment amid evolving macroeconomic conditions.

WHAT’S BEING SAID

“Critical Minerals Financing Corporation, ABC Transport, Computer Warehouse Group, Zichis Agro-Allied Industries and Neimeth International Pharmaceuticals were among the stocks that weighed on market performance.” – Market Trading Report

WHAT’S NEXT

Market participants will monitor mid-week trading sessions to determine whether buying interest emerges to reverse the current negative market breadth.

BOTTOM LINE

The Nigerian Exchange retreated as profit-taking in 34 listed equities wiped N256 billion from market capitalization, bringing the All-Share Index down to 250,273.50.