The Nigerian Exchange (NGX) started the week on a downward trajectory, shedding N220 billion in market capitalization due to declines in major stocks, including Nigerian Breweries. Weak investor confidence in the consumer and industrial goods sectors contributed to the bearish performance on Monday.
Market Performance
At the close of trading, the market capitalization dropped from N89.72 trillion on Friday to N89.5 trillion, while the All-Share Index fell by 347.12 points, or 0.24%, to 141,498.20. Despite this daily loss, the market has recorded a four-week gain of 0.35% and an impressive year-to-date growth of 37.48%. However, the week-on-week performance showed a slight decline of 0.11%.
Trading activity saw 488.5 million shares exchanged in 28,598 deals, valued at N13.71 billion. This reflects a 13% increase in trading volume, a 2% rise in turnover, and an 18% increase in the number of deals compared to the previous session. A total of 125 listed equities were traded, with 22 stocks gaining and 28 declining.
Top Gainers and Losers
Royal Exchange led the gainers, rising 9.8% to close at N2.24 per share. Secure Electronic Technology climbed 6.67% to N0.80, Chams advanced 6.13% to N3.29, Prestige Assurance gained 5.75% to N1.84, and Daar Communications increased 5.66% to N1.12. On the other hand, McNichols was the biggest loser, dropping 10% to N3.33 per share, followed by Ikeja Hotel with a 9.8% decline to N20.70. FTN Cocoa Processors fell 8.33% to N5.50, Nigerian Breweries shed 7.64% to N70.15, and Honeywell Flour Mills lost 6.79% to N20.60.
Trading Volume and Value
Universal Insurance recorded the highest trading volume with 79.6 million shares, followed by Zenith Bank with 58.6 million shares, Nigerian Breweries with 32.5 million shares, and United Bank for Africa (UBA) with 32 million shares. In terms of value, Zenith Bank topped the chart with N3.86 billion, followed by Nigerian Breweries at N2.4 billion, Guaranty Trust Holding Company at N1.74 billion, UBA at N1.38 billion, and MTN Nigeria at N277.6 million.
Sectoral Overview
Sectoral performance was mixed. The Premium Index edged up by 0.02%, and the NGX Industrial Index remained unchanged. However, the Insurance Index declined by 0.08%, the NGX Banking Index fell by 0.25%, and the Main Board Index dropped by 0.39%, reflecting broader challenges in key sectors.
Economic Context
The bearish start to the week highlights ongoing volatility in Nigeria’s equity market, driven by sector-specific pressures and cautious investor sentiment. While the market has shown resilience with significant year-to-date gains, the recent downturn underscores the need for sustained positive momentum to bolster investor confidence.
