Nigeria’s equities market extended its losing streak on Wednesday as renewed selling pressure across major sectors wiped N1.67 trillion from the Nigerian Exchange Group (NGX) market capitalisation. The All-Share Index (ASI) fell by 1.05% to close at 242,223.10 points, its lowest level of the week, as investors continued to reduce exposure to heavyweight stocks.
The latest decline follows Tuesday’s N1.88 trillion market-capitalisation loss, bringing the total value erased from the market in just two sessions to approximately N3.55 trillion. Heavyweights including BUA Cement, Nestlé Nigeria, Nigerian Breweries and Transcorp Plc came under intense pressure, while market breadth remained firmly negative, with 44 stocks declining against only 11 gainers.
Analysts and market watchers are also keeping a close eye on the upcoming Dangote Refinery IPO, with its subscription window scheduled to open on September 14. The timing has fuelled speculation that some investors are raising cash or repositioning their portfolios ahead of what is expected to be one of Nigeria’s most significant capital-market transactions. Despite the sell-off, however, the NGX remains up 55.66% year-to-date.
BUA Cement emerged as one of the biggest casualties of Wednesday’s session, plunging 10% to N278.10 per share. Nigerian Breweries dropped 9.76% to N74.00, Cadbury Nigeria declined 9.94% to N58.45, while Nestlé Nigeria fell 6.51% to N2,800. Transcorp Plc also lost 5.57% to N33.05. On the positive side, Champion Breweries led the gainers with a 9.90% increase to N11.10, followed by VFD Group, UPDC, Ikeja Hotel and Cutix.
The sectoral picture was equally weak, with the Industrial Index falling 3.10%, while the Insurance and Consumer Goods indices declined 3.07% and 2.09%, respectively. The Banking Index was comparatively resilient, easing 0.53% after Tuesday’s sharp decline, while the Oil & Gas Index slipped just 0.20%. Trading activity also moderated, with volume falling 29.04% to 534.45 million shares and turnover declining 19.94% to N22.28 billion. As investors navigate the Dangote Refinery IPO and Nigeria’s transition to FTSE Russell Frontier Market status later in September, the coming sessions could prove crucial for the direction of the NGX.
source: nairametrics
