The Nigerian Exchange Limited (NGX) experienced a consecutive day of decline on Thursday, extending its losing streak as investor sentiment remained subdued. The market capitalization, a key indicator of the overall value of listed companies, decreased by N31 billion, reflecting a slight yet impactful dip in investor confidence. This downturn followed a similar trend observed on Wednesday, where the market shed N74 billion in value, highlighting a prevailing negative sentiment among market participants. The persistent losses, while concerning, are juxtaposed against the backdrop of a positive year-to-date performance, suggesting a degree of resilience within the Nigerian stock market.
The All-Share Index (ASI), a benchmark that tracks the overall performance of the stock market, closed at 105,426.12 points, marking a 0.05% decline from the previous day’s closing figure of 105,475.38 points. This marginal decline, while seemingly small, contributes to the overall downward trend and reflects the cautious approach adopted by investors. The decline in the ASI underscores the broader market sentiment and indicates a prevailing bearish outlook among traders. The total market capitalization, which represents the cumulative value of all listed companies, settled at N66.11 trillion, down from N66.14 trillion the previous day. This reduction in market capitalization further underscores the impact of the selling pressure witnessed during the trading session.
Trading activity on Thursday was characterized by a significant decrease in both volume and value compared to the preceding day. A total of 423.62 million shares, valued at N9.18 billion, were traded across 11,393 deals. This represents a substantial 67% decline in trading volume and a 27% drop in turnover compared to Wednesday’s trading session. While the volume and value of trades decreased, the number of deals executed increased by 4%, suggesting a possible shift in trading strategies, with investors potentially focusing on smaller, more frequent transactions rather than large block trades. This change in trading patterns could indicate a degree of uncertainty or cautious optimism among market participants.
The performance of individual stocks varied, with some experiencing significant declines while others registered notable gains. John Holt led the decliners, with its share price falling by 10% to close at N7.74. Other notable losers included Chams, Secure Electronic Technology, May & Baker, UPDC, and Custodian Investment, all experiencing declines ranging from 6.70% to 8.52%. These declines likely reflect company-specific factors as well as the broader market sentiment. On the other hand, The Initiates Plc topped the gainers’ chart, with its share price appreciating by 9.85% to close at N4.46. Mutual Benefits Assurance and Universal Insurance also posted strong gains of 9.09% each, closing at N0.96 and N0.60, respectively. Other gainers included Royal Exchange and Learn Africa, demonstrating that despite the overall market downturn, pockets of positive performance persisted within specific sectors or individual companies.
Analyzing trading activity by volume reveals that Access Holdings dominated the market, with 65 million shares exchanged. Zenith Bank and Fidelity Bank followed closely with 41.5 million and 40.7 million shares traded, respectively. Secure Electronic Technology also witnessed significant trading activity, with 38.4 million shares changing hands. The high trading volume in these prominent financial institutions could indicate ongoing portfolio adjustments by investors or speculative activity driven by market news or rumors. It is also worth noting that Secure Electronic Technology, despite being among the top traded stocks by volume, also featured on the losers’ list, suggesting potential profit-taking activities by some investors.
A sectoral analysis of the market performance reveals a mixed picture. The Top 30 Index, representing the performance of the 30 most capitalized companies, experienced a marginal decline of 0.01%. However, it maintained a positive one-week gain of 0.59% and a year-to-date increase of 2.64%, indicating underlying strength within the largest companies listed on the exchange. The Premium Index, which tracks the performance of high-priced stocks, advanced by 0.16%, further contributing to its year-to-date growth of 4.68%. The Insurance and Industrial Indices also recorded modest gains of 0.09% and 0.01%, respectively. Conversely, the Main Board Index and the Consumer Goods Index declined by 0.16% and 0.2%, respectively, suggesting weakness in these specific segments of the market. Despite the fluctuating sectoral performances, the overall market maintained a year-to-date gain of 2.43%, highlighting the resilience of the Nigerian stock market amidst the prevailing bearish sentiment.
