The Nigerian Exchange Limited (NGX) shed N183 billion in market capitalization on Tuesday, driven by bearish sentiment that pulled down several blue-chip stocks. The All-Share Index fell by 0.3%, or 348.61 points, closing at 114,910.16, while market capitalization declined from N72.7 trillion to N72.5 trillion, reflecting a significant loss in investor value.
Trading Activity and Market Mood
Trading saw a slight uptick, with 787.3 million shares worth N25.67 billion exchanged in 23,170 deals, up 9% in volume, 17% in turnover, and 5% in deals compared to the prior session. However, negative sentiment persisted, with 35 stocks declining against 29 gainers among the 128 equities traded. C and I Leasing led gainers with a 10% rise to N4.62, followed by Learn Africa and Mutual Benefits Assurance, both up 10% to N4.18 and N1.10, respectively. University Press gained 9.82% to N5.48.
Transcorp Power topped losers, dropping 9.98% to N295.70, while Oando fell 9.97% to N58.25. Ellah Lakes and Omatek Ventures lost 9.87% and 9.33%, closing at N4.29 and N0.68, respectively. Custodian Investment and Sterling Financial Holdings also declined significantly, by 8.63% and 8.55%.
Key Drivers and Sector Performance
Zenith Bank led trading volume with 96.2 million shares, followed by Guaranty Trust Holding Company (83.4 million), United Bank for Africa (65.2 million), and Access Holdings (64.2 million). Sectoral performance was mixed: the Top 30 Index and Banking Index fell by 0.28% and 0.2%, respectively, while the Pension Index rose 0.43%, signaling institutional investor interest. The Insurance Index gained 0.4%, the Industrial Index 0.16%, but the Premium Index dipped 0.02%.
The market’s decline follows a N121 billion loss on Monday, driven by sell-offs in banking stocks after a Central Bank of Nigeria (CBN) directive restricting dividends for banks with forbearance exposures, as reported by The PUNCH. Analysts attribute Tuesday’s losses to continued uncertainty around the CBN’s recapitalization measures and macroeconomic pressures like inflation.
Market Outlook
Despite the day’s downturn, the NGX has posted moderate gains over longer periods, with a 0.26% one-week increase, a 4.97% four-week rise, and an 11.64% year-to-date return. Analysts expect volatility to persist as investors monitor CBN policies and economic indicators, but selective buying in resilient sectors like insurance and industrials may provide some stability.
