By Seun Ibiyemi
Investors on the Nigerian Exchange (NGX) lost more than ₦1.3 trillion on Monday as the equities market opened the week on a negative note, extending its bearish run for a second consecutive trading session.
The local bourse witnessed intense selloffs that dragged key performance indicators lower by 0.84 per cent, as investors took profit on recently appreciated mid-cap and blue-chip stocks across major sectors of the market.
The bearish sentiment led to a decline of 2,049.65 basis points in the NGX All-Share Index (ASI), which closed at 241,749.11 points.
Similarly, the market capitalisation fell by ₦1.315 trillion, or 0.84 per cent, to settle at ₦155.13 trillion at the close of trading.
Market analysts attributed the downturn to sustained profit-taking activities, particularly in heavyweight stocks within the industrial goods, banking and insurance sectors.
The Industrial Goods and Insurance indices recorded the steepest declines, driven largely by selloffs in major stocks, including BUA Cement, FCMB, Zenith Bank and Guaranty Trust Holding Company (GTCO).
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Despite the weak market performance, trading activity improved during the session, with both volume and value of transactions recording significant increases.
A total of 523.54 million shares valued at ₦22.25 billion were exchanged in 59,945 deals, representing increases of 18.64 per cent and 14.81 per cent in volume and value, respectively.
FCMB emerged as the most actively traded stock by volume, accounting for 19.64 per cent of total shares traded. It was followed by International Breweries, Access Holdings, McNichols and Stanbic IBTC.
On the value chart, Seplat Energy dominated market activity, contributing 16.27 per cent of the total transaction value to emerge as the session’s highest-traded stock by turnover.
Market breadth closed firmly in negative territory, with 46 stocks recording losses against 19 gainers.
The Nigeria Infrastructure Debt Fund led the gainers’ table with an appreciation of 9.97 per cent. International Breweries followed with a gain of 9.77 per cent, while NAHCO, UACN, Daar Communications and Vitafoam also posted gains.
On the losers’ chart, PZ Cussons recorded the steepest decline after shedding 10 per cent of its share price.
BUA Cement followed closely with a loss of 9.99 per cent, while Red Star Express, R.T. Briscoe, C&I Leasing and Caverton Offshore Support Group also closed lower.
A sectoral analysis showed that four of the five major indices ended the day in the red. The Industrial Goods index suffered the biggest loss, declining by 3.28 per cent, followed by the Insurance sector, which dropped by 2.18 per cent.
The Banking index fell by 1.44 per cent, while the Oil and Gas sector recorded a marginal decline of 0.09 per cent.
The Consumer Goods sector was the only gainer during the session, advancing by 0.59 per cent despite the broader market downturn.
The latest decline underscores growing caution among investors as profit-taking activities continue to weigh on market performance following recent rallies on the Nigerian Exchange.
