The Nigerian Exchange Limited (NGX) experienced a significant downturn on Tuesday, reversing the previous day’s gains threefold. The All-Share Index (ASI), a key indicator of market performance, declined by 0.51%, settling at 106,904.25 points compared to the previous day’s close of 107,455.13 points. This drop wiped out N344.95 billion from the market capitalization, which closed at N66.943 trillion. Despite the day’s losses, the year-to-date gain remained positive at 3.91%. However, both the month-to-date and week-to-date performances dipped into negative territory at -0.85%. This downturn signifies a volatile market environment influenced by significant sell-offs by investors.
Trading activity on Tuesday was marked by considerable volume, with 395.47 million shares worth N8.76 billion exchanged in 13,967 deals. This high volume, coupled with the significant price fluctuations, underscores the prevailing uncertainty and cautious investor sentiment. The market breadth, which compares the number of advancing and declining stocks, further confirmed the negative sentiment, with 44 stocks recording losses compared to only 17 gainers. This imbalance suggests a broader trend of selling pressure overpowering buying interest, contributing to the overall market decline.
Among the gainers, Union Homes Real Estate Investment Trust led the pack with a near 10% surge in its share price, closing at N48.65. NEM Insurance also performed well, appreciating by 8.78% to close at N14.25. Other notable gainers included Ikeja Hotel and Consolidated Hallmark Insurance, which saw their share prices rise by 8.72% and 6.76%, respectively. Livestock Feeds rounded out the top gainers with a 4.53% increase. These positive performances, however, were overshadowed by the broader market downturn and the significant losses experienced by a larger number of stocks.
Conversely, the losers’ table was dominated by significant declines. Transcorp and Dangote Sugar both suffered a 10% drop in their share prices, closing at N51.30 and N36.00, respectively. Eterna also experienced a 10% decline, mirroring the losses of Guinea Insurance and Deap Capital, which both closed 10% lower. These substantial declines in prominent stocks contributed significantly to the overall market downturn and the erosion of investor wealth. The widespread losses across various sectors suggest a general lack of confidence in the market, potentially driven by macroeconomic factors or sector-specific concerns.
Analyzing trading volume, United Capital emerged as the most actively traded stock with 40.53 million shares changing hands. Ellah Lakes, Zenith Bank, Universal Insurance, and Access Corporation followed closely, indicating significant investor interest in these companies. In terms of value traded, Zenith Bank led the market with N1.23 billion worth of shares traded, followed by GTCO, United Capital, Aradel Holdings, and UBA. This high trading value, particularly in financial institutions, suggests that investors are actively repositioning their portfolios, potentially reflecting a shift in risk appetite or expectations regarding future market performance.
The Tuesday downturn contrasts sharply with the positive performance recorded on Monday, when the NGX received a boost from Fidelity Bank Plc’s listing of additional shares. This listing added N94 billion to the market capitalization, demonstrating the potential for individual corporate actions to positively impact the overall market. However, the subsequent decline on Tuesday highlights the market’s underlying volatility and susceptibility to broader economic pressures and investor sentiment. The contrasting performances on Monday and Tuesday underscore the dynamic nature of the Nigerian stock market and the importance of closely monitoring both company-specific news and macroeconomic trends.
