AThe Nigerian Exchange (NGX) experienced a downturn on Tuesday as investors reacted to the new inflation data. The stock market capitalization dropped by N166 billion, with widespread sell-offs observed in major stocks.
Despite the drop in inflation, investors opted to take profits by selling off shares, leading to a decline in key market indices. The All-Share Index (ASI) fell by 266.76 points, closing at 107,670.98. Trading activity also slowed down, with the total volume of shares traded decreasing by 20.03% and the total value of transactions dropping by 12.07%.
According to market analysts at Atlass Portfolios Limited, a total of 408.72 million shares worth N11.26 billion were traded across 14,174 deals. The most actively traded stocks by volume were ACCESSCORP (13.48%), UBA (7.72%), GUINNESS (7.45%), FIDELITYBK (4.91%), and ZENITHBANK (3.90%).
In terms of value, GUINNESS led the market, accounting for 19.95% of total trades. Other top gainers included CONHALLPLC (+9.76%), SUNUASSUR (+9.58%), and NEIMETH (+8.77%).
However, 39 stocks depreciated in value, dragging the market downward. The biggest losers included TIP (-9.89%), CADBURY (-9.06%), and ELLAHLAKES (-7.07%). The banking sector saw the most significant losses, declining by 1.02%, followed by consumer goods (-0.39%), oil & gas (-0.24%), and industrial stocks (-0.18%). Only the insurance sector posted gains, rising by 2.63%.
The NGX has now lost a total of N937 billion since Friday, with market sentiment remaining bearish. The selling pressure was primarily driven by investors cashing in on gains from mid- to high-cap stocks that had previously surged in value.
Stockbrokers noted that early decliners on Tuesday included major banking stocks such as ZENITHBANK (-2.14%), JAIZBANK (-1.73%), UBA (-1.43%), and FBNH (-1.39%).
Market analysts expect trading to remain volatile in the coming days as investors digest the impact of the inflation rebasing and adjust their portfolios accordingly.
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