NGX loses N137bn as sell-offs weigh on investor sentiment

The Nigerian Exchange Limited (NGX) opened the week on a bearish note, with market capitalisation declining by N137 billion amid renewed sell-offs and weak investor sentiment.

The NGX All-Share Index fell by 265.99 points, representing a 0.11 per cent decline, to close at 239,085.17 points. Consequently, market capitalisation dropped to N154.397 trillion.

The downturn was driven largely by losses recorded in several large- and mid-cap stocks, including First Holdco, Fidelity Bank, Ikeja Hotel, The Initiates Plc and Neimeth International Pharmaceuticals.

Market breadth was negative, with 32 stocks recording losses against 18 gainers.

International Energy Insurance led the losers, declining by 9.82 per cent to close at N3.49 per share. Neimeth International Pharmaceuticals followed with a 9.38 per cent drop to N7.25, while Fidelity Bank shed six per cent to close at N18.80.

Guinea Insurance fell by 5.19 per cent to 73 kobo, while NPF Microfinance Bank declined by 4.82 per cent to N3.95 per share.

On the gainers’ side, Red Star Express led the market with a 9.86 per cent increase to N16.15 per share.

University Press rose by 9.38 per cent to N5.25, while UPDC gained 5.97 per cent to close at N3.55. Haldane McCall appreciated by 3.90 per cent to N4, while Sunu Assurance gained 3.33 per cent to N3.10 per share.

Despite the market decline, trading activity increased significantly during the session. Total volume traded jumped by 60.5 per cent to 668.72 million shares, valued at N23.83 billion across 45,894 deals.

Fortis Global Insurance recorded the highest volume, with 205.336 million shares worth N412.925 million traded.

UBA followed with 81.334 million shares valued at N3.603 billion, while First Holdco recorded 40.414 million shares worth N5.174 billion.

FCMB Group traded 21.055 million shares valued at N238.692 million, while Access Holdings recorded 17.867 million shares worth N484.184 million.

Commenting on the market outlook, United Capital Plc said equities were likely to remain relatively stable during the week despite recent profit-taking after strong gains earlier in the year.

The investment firm said the NGX All-Share Index remained significantly higher year-to-date, sustaining investor interest despite the recent pullback.

It said investors were expected to favour companies with strong earnings, attractive valuations and solid dividend prospects.

However, United Capital warned that continued profit-taking could constrain further gains and keep trading cautious in the short term.

It added that stability in the naira and improving investor confidence could support the market, while forthcoming corporate earnings reports would likely influence the performance of individual stocks.

Overall, Monday’s session reflected cautious trading, as increased market activity failed to offset widespread losses among key equities.