Investors incurred a N784 billion loss on Stock Exchange

This past week, the Nigerian Exchange Ltd. (NGX) experienced a significant decline, with the total market capitalization dropping by N784 billion to N55.512 trillion, a 1.39% decrease from the opening figure of N56.296 trillion. The NGX All-Share Index also fell by 1.39% or 1,387 points, ending the week at 98,152.91 compared to 99,539.75 the previous week reported The Guardian NG

Most sector indices closed lower except for NGX Insurance, NGX MERI Growth, NGX MERI Value, and NGX Industrial Goods, which saw marginal gains of 0.02%, 1.13%, 0.09%, and 0.38%, respectively. The NGX ASeM and NGX Sovereign Bond indices remained unchanged.

The market downturn was primarily driven by profit-taking in major stocks such as MTN Nigeria, Zenith Bank, and FBN Holdings. However, there was some buying interest in stocks like Guaranty Trust Holding (GTCO), United Bank of Africa (UBA), and Fidelity Bank, but this was not sufficient to reverse the overall negative trend.

This week, 27 equities appreciated in value, an improvement over the 13 equities from the previous week. Conversely, the number of declining equities dropped to 43 from 62, while 84 stocks remained stable, slightly higher than last week’s 79.

In terms of individual stock performance, Sunu Assurances was the top gainer, rising by 25k to close at N1.25. It was followed by CAP Plc, which increased by N4.85 to close at N28.85, and Livestock Feeds Plc, which rose by 21k to N1.66 per share. Japaul Gold and Ventures Plc and Unilever Nigeria also saw notable gains.

On the losing side, FBN Holdings and Wema Bank were notable decliners, dropping by N3.95 and 90k to close at N20.35 and N6.25, respectively.

Trading volume this week reached 1.839 billion shares valued at N34.258 billion across 37,528 transactions, compared to 1.597 billion shares worth N32.313 billion in 44,915 deals the previous week.

The financial services sector dominated trading activity, accounting for 61.38% of total volume and 65.06% of total value with 1.129 billion shares traded valued at N22.290 billion in 22,008 transactions. The conglomerates sector followed with 194.179 million shares worth N2.822 billion in 1,923 deals, and the construction/real estate sector recorded a turnover of 130.702 million shares worth N649.957 million in 556 deals.

Among the most actively traded stocks were UBA, Access Holdings Plc, and Transnational Corporation Plc, together accounting for 31.65% of the total equity turnover volume and 30.86% of the value, with 582.024 million shares worth N10.571 billion traded in 8,849 deals.

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