The Nigerian equities market closed lower on Tuesday, ending a multi-day rally as investors took profits in major banking stocks. Data from the Nigerian Exchange Limited (NGX) showed that the All-Share Index slipped from 190,262.44 to 189,362.94, representing a 0.47 per cent decline. Consequently, the NGX market capitalisation fell from N122.13tn to N121.55tn, reflecting renewed caution among investors after recent gains.
Market analysts attributed the downturn largely to heavy sell-offs in tier-one banking stocks, which outweighed gains recorded in consumer goods companies. Shares of Zenith Bank Plc dropped by 10.00 per cent, while United Bank for Africa Plc declined by 6.56 per cent. Access Holdings Plc shed 4.63 per cent, and Guaranty Trust Holding Company Plc lost 2.33 per cent, significantly pressuring the broader market.
Despite the bearish close, trading activity remained strong. The number of deals surged by 34.82 per cent to 86,697 transactions, while trading volume climbed 12.93 per cent to 1.19 billion units. However, total transaction value dipped by 4.44 per cent to N60.19bn, suggesting that while investors were active, the overall value of trades moderated.
In contrast to the banking sector slump, the consumer goods segment recorded impressive gains. The NGX Consumer Goods Index rose from 4,328.43 to 4,438.58, buoyed by buying interest in key stocks. BUA Foods Plc gained 5.77 per cent, Nestlé Nigeria Plc rose 2.47 per cent, Unilever Nigeria Plc advanced 3.63 per cent, and Cadbury Nigeria Plc added 1.47 per cent. Their performance helped cushion what could have been a steeper market decline.
Other sectoral indices showed mixed outcomes. The NGX Industrial Index eased 0.50 per cent as Dangote Cement Plc recorded a marginal 0.16 per cent gain, while Lafarge Africa Plc fell 4.04 per cent. The NGX Insurance Index dipped 0.57 per cent, with FTG Insurance Plc rising 9.52 per cent and AXA Mansard Insurance Plc declining 8.77 per cent. Meanwhile, the NGX Oil & Gas Index remained largely flat, as Eterna Plc gained 3.23 per cent and Aradel Holdings Plc slipped 0.25 per cent. Overall, Tuesday’s session underscored sectoral divergence, with banking losses overpowering consumer goods strength.
source: punch