The Nigerian Exchange (NGX) experienced a bearish trend on Tuesday, with the market losing N285 billion in capitalisation, largely driven by declines in key stocks. The All-Share Index dropped by 454.16 points, or 0.43%, closing at 106,167.75 points. This marked an extension of the one-week loss to 0.69%, reflecting ongoing challenges in the market.
The trading session saw 324.58 million shares exchanged, valued at N7.92 billion, with 12,652 deals conducted. Compared to the previous session, this represented an 11% drop in volume, a 55% decrease in turnover, and a 13% fall in the number of deals. The total market capitalisation now stands at N66.5 trillion.
While the broader market struggled, Livestock Feeds led the gainers’ chart with a notable 9.93% rise, closing at N9.85 per share. Other notable gainers included Cornerstone Insurance, International Energy Insurance, and Smart Products Nigeria, which saw increases of 9.25%, 8.99%, and 8.33%, respectively. However, the losers’ chart was led by MeCure Industries, which declined by 10%, followed by Associated Bus Company, Daar Communications, and Guinea Insurance.
Banking stocks dominated trading volume, with Fidelity Bank leading the pack with 29.4 million shares traded, followed by Access Holdings, Guaranty Trust Holding, and Zenith Bank. While the broader market struggled, the NGX Insurance Index saw a positive performance, gaining 0.87%, thanks to increased investor interest in insurance stocks.
Market analysts at Afrinvest predict that the bearish trend may continue in the short term, with the absence of positive market catalysts keeping investor sentiment subdued. Despite a brief positive start to the trading week, it seems the market’s negative momentum is expected to persist.
SOURCE: PUNCH