The Nigerian Exchange Limited (NGX) came under heavy selling pressure on Wednesday as investors offloaded shares in major consumer goods and banking companies, wiping about N1.76tn from the market’s capitalisation. The downturn pushed the All-Share Index down to 243,967.09 points from 246,723.57 points recorded in the previous session, highlighting a sharp shift in investor sentiment.
The sell-off was particularly noticeable among large-cap stocks, with BUA Foods Plc emerging as one of the biggest drags on the market. The company fell by the maximum daily limit of 10 per cent to close at N760.60 per share, while Unilever Nigeria also suffered a steep 9.97 per cent decline to N131.40. As a result, the NGX Consumer Goods Index plunged to 4,106.48 points from 4,319.51 points.
Banking stocks were not spared as investors also took profits and reduced exposure across several major financial institutions. Access Holdings declined by 3.01 per cent to N27.40, Fidelity Bank fell 2.27 per cent to N21.50, United Bank for Africa dropped 2.15 per cent to N45.45, while Zenith Bank lost 1.34 per cent to close at N124.80. The broader NGX Banking Index consequently slipped to 2,560.67 points. However, Ecobank Transnational bucked the trend with a strong 9.93 per cent gain, while Jaiz Bank and Wema Bank also recorded gains.
Despite the broad market weakness, the insurance sector provided a bright spot, with the NGX Insurance Index rising to 1,152.13 points. International Energy Insurance jumped 10 per cent to N4.40, while Cornerstone Insurance, Veritas Kapital Assurance and Sovereign Trust Insurance also recorded notable gains. Trading activity remained active, with investors executing 39,031 deals involving more than 1.45 billion shares, although the heavy volume did little to prevent the overall market from closing lower.
By the close of trading, total equity market capitalisation had fallen to N157.49tn, while the NGX 30, Premium and Main-Board indices all recorded declines. The market’s performance came against a backdrop of the Central Bank of Nigeria maintaining its Monetary Policy Rate at 26.50 per cent. With investors continuing to reassess positions in major stocks, Wednesday’s session underscored the volatility currently shaping the Nigerian equities market as market participants watch closely for the next direction of the NGX.
source: punch
