Trading on the Nigerian Exchange (NGX) ended on a bearish note on Wednesday as investors lost approximately N800 billion in market value following a broad decline in major stocks. The NGX All-Share Index (ASI) slipped by 0.5 per cent, closing at 245,418.37 points, while total market capitalisation dropped to N158.319 trillion. The decline was largely driven by price losses in heavyweight stocks such as Nestlé Nigeria, BUA Foods, UACN, Guinness Nigeria, and MeCure Industries, which weighed heavily on overall market performance.
Despite the market’s decline, trading activity remained robust, highlighting sustained investor participation. Analysts observed that First Holdco accounted for more than two-thirds of the market’s total trading value, reflecting strong institutional interest. They also pointed to continued demand for tier-one banking stocks, suggesting that investors remain confident in the financial sector even as broader market sentiment softens.
Looking ahead, market analysts at Imperial Asset Managers Limited maintained a cautiously optimistic outlook, noting that healthy market liquidity, improving year-to-date returns, and sustained institutional investments are expected to support the equities market. However, they warned that the close balance between gainers and losers indicates investors are becoming more selective, with greater emphasis being placed on companies with solid fundamentals, resilient earnings, and attractive dividend prospects. Attention is also expected to remain on upcoming corporate earnings, macroeconomic developments, and foreign exchange stability.
Market breadth remained positive as 37 stocks recorded gains, surpassing the 27 decliners. Cadbury Nigeria, Trans-Nationwide Express, and Unilever Nigeria emerged as the top performers, each appreciating by 10 per cent. They were followed by Thomas Wyatt Nigeria, which gained 9.95 per cent, while NASCON Allied Industries advanced 8.89 per cent. On the losing side, Nestlé Nigeria and BUA Foods led the decline with losses of 10 per cent each, alongside notable drops in MeCure Industries, International Energy Insurance, and UACN.
Trading volume reflected heightened market activity, rising by 34.34 per cent to 1.253 billion shares valued at N118.179 billion, exchanged across 47,458 deals. First Holdco dominated trading with 736.04 million shares worth N80.81 billion, far ahead of Access Holdings, which traded 79.58 million shares valued at N2.09 billion. Guaranty Trust Holding Company (GTCO) also featured among the most active stocks, recording transactions of 34.04 million shares worth N4.42 billion, underscoring the continued dominance of banking stocks in market activity.
source: The Guadian
