NGX Extends Losing Streak as Investors Lose N545 Billion Amid Declining Trading Activity

The Nigerian Exchange (NGX) extended its decline for a third consecutive trading session on Tuesday as continued profit-taking erased approximately N544.5 billion from investors’ wealth despite renewed interest in selected banking and insurance stocks.

The NGX All-Share Index (ASI) declined 0.35 percent to close at 241,611.23, down from 242,454.65 recorded on Monday.

Equity market capitalisation also slipped from N156.518 trillion to N155.973 trillion, translating to a loss of about N544.5 billion.

The latest decline brings the benchmark index’s cumulative loss since the beginning of the week to just over 1,000 points, reflecting continued cautious sentiment among investors.

Trading Activity Slows Sharply

Market participation weakened considerably during the session.

Investors traded 429.84 million shares valued at N27.48 billion in 35,683 deals, compared with 1.33 billion shares worth N22.93 billion exchanged in 45,494 deals on Monday.

While trading volume fell by nearly 68 percent, the total value of transactions increased by almost 20 percent, indicating investors traded fewer shares but concentrated capital in higher-priced equities.

The decline in the number of deals also points to more cautious market participation as investors reassessed positions following last week’s broad market correction.

Banking Stocks Return to the Forefront

Unlike Monday’s insurance-led session, banking stocks dominated trading activity.

Sterling Financial Holdings Company Plc emerged as the most actively traded stock after investors exchanged 51.57 million shares valued at N390.60 million.

FCMB Group Plc followed closely with 49.98 million shares worth N584.79 million.

Chams Holding Company Plc maintained its place among the market’s most active equities after trading 32.41 million shares, while Veritas Kapital Assurance Plc recorded 17.97 million shares.

FirstHoldCo Maintains High-Value Institutional Interest

Although FirstHoldCo Plc ranked fifth by trading volume, it again generated the highest transaction value among the day’s most active stocks.

Investors exchanged 17.04 million shares worth N2.23 billion, reinforcing sustained institutional interest in the financial services company.

The continued multi-billion-naira turnover suggests FirstHoldCo remains one of the Nigerian Exchange’s preferred institutional investment destinations despite the broader market weakness.

Mixed Performance Across Equities

Market gains remained limited to a handful of stocks.

HMCALL Plc led the gainers’ chart after appreciating 9.97 percent to N3.20.

Veritas Kapital Assurance Plc gained 7.09 percent, while TAJ Sukuk S2 advanced 5.33 percent.

Tantalizers Plc rose 5.26 percent, and RT Briscoe Plc recovered 4.31 percent after leading Monday’s losers.

The modest gains reflected selective buying rather than broad-based accumulation across the market.

Profit-Taking Continues

Selling pressure remained evident across several counters.

Red Star Express Plc declined the maximum 10 percent to lead the losers’ chart.

Trans-Nationwide Express Plc shed 9.94 percent, giving up much of Monday’s gains.

Meyer Plc lost 9.88 percent, while Chellaram Plc declined 9.77 percent.

Fortis Global Insurance Plc extended its recent weakness with another 9.70 percent decline, continuing the heightened volatility that has characterized the stock in recent weeks.

ETF Market Mixed, Bond Market Stable

Exchange-traded funds delivered mixed performance.

NEWGOLD gained N999.99 to close at N99,999.99, while MERVALUE advanced N2.99.

VETGOODS added N1.73, whereas VETBANK and VETGRIF30 declined 29 kobo and 90 kobo, respectively.

Meanwhile, the bond market remained stable as AXA2027S1, CEMC2045S1, COLE26CPS6, DAN2034S1 and FG182032S2 all closed unchanged.

Outlook

Tuesday’s trading session reflected a market that remains under pressure but is experiencing sector rotation rather than widespread liquidation.

The return of banking stocks to the top of the activity chart, coupled with continued institutional participation in FirstHoldCo, suggests investors are selectively deploying capital into fundamentally strong financial companies.

However, the continued decline in the benchmark index and weaker trading volume indicate investors remain cautious as they await fresh corporate catalysts and clearer market direction after the recent wave of profit-taking.