The Nigerian Exchange Limited (NGX) extended its losing streak on Wednesday as heavy profit-taking in energy and insurance stocks pushed the benchmark All-Share Index below the 241,000-point mark. The renewed selling pressure reflected cautious investor sentiment, with market participants trimming positions in some high-priced equities after recent gains.
At the close of trading, the NGX All-Share Index fell by 0.36 per cent, losing 860.76 points to settle at 240,750.47 points, compared with 241,611.23 points recorded in the previous session. The decline also wiped N555.68bn off the overall market capitalisation, which dropped from N155.97tn to N155.42tn.
Energy stocks were among the biggest drags on the market, led by Aradel Holdings Plc, which suffered a maximum daily price decline of 9.99 per cent to close at N1,374.20 per share. The broader energy space, however, was mixed, with Japaul Gold & Ventures Plc and Oando Plc gaining 0.35 per cent and 0.57 per cent respectively, while Seplat Energy Plc and TotalEnergies Marketing Nigeria Plc remained unchanged.
The insurance sector recorded even stronger selling pressure, emerging as the worst-performing sub-sector during the session. International Energy Insurance Plc led the losers with a 10 per cent decline to N4.77 per share, while Universal Insurance Plc fell 9.41 per cent to N0.77. Royal Exchange Plc, Sovereign Trust Insurance Plc and Regency Assurance Plc also recorded notable losses of 8.62 per cent, 7.41 per cent and 5.88 per cent respectively. Despite the broader downturn, some stocks bucked the trend, with Haldane McCall Plc gaining 10 per cent, Coronation Insurance Plc rising 8.44 per cent and UACN Plc advancing 6.56 per cent.
Banking stocks offered some support as United Bank for Africa Plc, Zenith Bank Plc, FCMB Group Plc and Access Holdings Plc posted gains, while Sterling Financial Holdings, Ecobank Transnational Incorporated and Guaranty Trust Holding Company Plc recorded marginal losses. Overall, trading remained active, with 1.19 billion shares worth a significant value exchanged in 34,491 deals. With investors continuing to rebalance their portfolios ahead of mid-quarter corporate developments, attention will now turn to whether bargain hunting can help the NGX stabilise or if the current wave of profit-taking will continue.
source: punch
