The Nigerian Exchange Limited (NGX) closed in the red on Thursday as heavy sell pressure in blue-chip stocks wiped off N25 billion from the market.
The NGX All-Share Index (ASI) declined by 41.01 points to settle at 108,568.50 points.
Market capitalization declined to N67.659 trillion amid losses in major stocks, Aradel Holdings, Africa Prudential, Nigerian Breweries, Oando, and Ikeja Hotel.
Despite broader market weakness, investor participation remained strong with total traded volume rising by 22.56% as investors exchanged 421.256 million units worth N8.425 billion in 13,269 deals.
Blue-Chip Stocks Drag Market Lower
The sell-off in large and medium-cap stocks weighed heavily on performance, pulling the NGX into negative territory.
The oil & gas sector was hit the hardest as the sector shed 1.0% followed by the banking index that fell by 0.7%.
However, consumer goods stocks edged up 0.7% while insurance stocks gained 0.1%. The industrial goods sector remained flat.
Investor sentiment as measured by market breadth closed negative with 32 stocks advancing and 24 declining.
Top Gainers and Losers
Despite the market’s downturn, select stocks recorded gains. Abbey Mortgage Bank led the gainers, rising 10% to close at N3.41 per share. University Press followed closely with a 9.78% increase to N5.05 while Sovereign Trust Insurance advanced 9.57% to N1.26.
Other notable gainers included Regency Alliance Insurance, up 7.58% to 71 kobo and The Initiates Plc, which climbed 7.23% to N4.30.
On the flip side, Union Dicon Salt led the losers’ chart, shedding 9.77% to close at N6 per share. Deap Capital Management and Trust lost 7.07% to settle at 92 kobo, while CWG fell 5.75% to N8.20.
Ikeja Hotels declined 5.56% to N11.90 while Tantalizers dipped 4.88% to N1.95 per share.
Most Traded Stocks
Ellah Lakes topped the activity chart with 136.677 million shares traded, valued at N440.157 million. Zenith Bank followed with 22.979 million shares worth N1.150 billion while Guaranty Trust Holding Company (GTCO) exchanged 20.832 million shares, valued at N1.307 billion.
Jaiz Bank recorded 17.396 million shares worth N58.592 million while United Bank for Africa (UBA) traded 16.278 million shares, valued at N617.003 million.
Market Outlook
Analysts anticipate continued market volatility, with investor sentiment likely to be influenced by global economic trends, monetary policies and corporate earnings reports.
While bargain hunting may provide support in the coming sessions, uncertainties surrounding macroeconomic policies and foreign exchange liquidity remain key concerns for market participants.
