The Nigerian equities market extended its losing streak on Wednesday, August 26, with investors continuing to sell off stocks across major sectors. The latest decline wiped about N259.76 billion from market capitalisation, marking the 11th consecutive trading session of losses after the market resumed trading following the Eid-ul-Mawlid public holiday.
The NGX All-Share Index (ASI) fell by 0.17% to 238,682.92 points from 239,085.17 points in the previous session. Market capitalisation also dropped to N154.14 trillion, pushing the benchmark further below the 240,000-point level. Despite the recent losses, the market remains up 53.38% year-to-date, showing just how strong the earlier rally had been.
Selling pressure was broad-based, with 41 stocks recording losses compared with just 17 gainers. Fidson Healthcare was the worst performer, plunging 9.99% to N84.20, while FTN Cocoa Processors, International Energy Insurance, Livestock Feeds and Omatek Ventures also recorded sharp declines. Among the few bright spots, Neimeth International Pharmaceuticals jumped 9.66% to N7.95, while NEM Insurance gained 6.67% to close at N32.
The sell-off was felt across several major sectors. The Insurance Index suffered the biggest decline, falling 0.94%, while the Banking Index dropped 0.41%, Consumer Goods declined 0.28%, and Oil & Gas slipped 0.11%. Trading activity, however, picked up despite the bearish mood, with 733.35 million shares worth N34.52 billion changing hands. This represented a 9.67% increase in volume and a much stronger 44.90% rise in trading value.
The latest downturn comes after the NGX All-Share Index climbed to a monthly high of 248,529.75 points on August 10, prompting investors to lock in profits after the market’s strong run. Analysts at Cowry Asset Management expect the bearish trend to continue as profit-taking persists, although portfolio rebalancing and strategic repositioning could provide room for a recovery. For now, investors appear to be asking the same question: how much further can the Nigerian stock market fall before buyers return?
source: nairametrics
