Nigerian Exchange Sheds N184bn as Market Sentiment Turns Sour

The Nigerian Exchange (NGX) closed lower on Tuesday with investors losing N184 billion in market value.

The All-Share Index (ASI) dipped by 0.33 percent to close at 101,707.70 points while the market capitalization dwindled by the same percentage to N55.652 trillion.

This sharp reversal follows the N101 billion gain recorded in the preceding trading session.

Sectoral indices also painted a gloomy picture with three out of the five sub-sectors displaying negative movements.

The Banking index bore the brunt of the losses, plummeting by 1.85 percent following sell-offs in banking giants like Unity Bank, Wema Bank, United Bank for Africa, and Zenith Bank Plc.

Similarly, the Consumer and Industrial Goods indexes shed 0.22 percent and 0.10 percent, respectively. This was because of the declines recorded in PZ Cussons, Guinness Nigeria, Nigerian Breweries, and Lafarge Africa.

However, amidst the sea of red, the Insurance and Oil/Gas sectors managed to eke out gains, rising by 1.13 percent and 0.09 percent, respectively.

Despite the market’s overall downturn, trading activity exhibited mixed trends. While the total number of deals and the value of trades decreased by 1.16 percent and 16.09 percent, respectively, the total volume of trades surged by 8.56 percent, reaching 263.19 million units.

The market breadth further reflected the day’s bearish sentiment, with 30 securities ending in losses compared to 24 gainers.

Notable losers included PZ, MORISON, and Computer Warehouse Group, while Honeywell Flour Mill, Juli Plc, and Cornerstone Insurance emerged as the top gainers.

Investors are now closely monitoring market developments amidst concerns over the sustainability of the current downward trend and its potential impact on future investment decisions.