NGX Extends Decline as Investors Lose N556 Billion Despite Surge in Trading Activity

The Nigerian Exchange (NGX) extended its losing streak to a fourth consecutive trading session on Wednesday as continued profit-taking across key sectors pushed the benchmark index lower despite a sharp rebound in trading activity.

The NGX All-Share Index (ASI) declined 0.36 percent to close at 240,750.47, compared to 241,611.23 recorded on Tuesday.

Equity market capitalisation also fell from N155.973 trillion to N155.417 trillion, wiping approximately N555.68 billion from investors’ wealth in a single trading session.

The latest decline reinforces the cautious mood that has dominated the market since last week’s correction, with investors continuing to rebalance portfolios after July’s strong rally.

Trading Activity Rebounds

Unlike the previous session, market activity strengthened significantly.

Investors traded 1.193 billion shares worth N37.82 billion in 34,546 deals, compared with 429.84 million shares valued at N27.48 billion exchanged on Tuesday.

The sharp increase in both trading volume and transaction value suggests institutional investors remained active in the market even as the benchmark index continued to decline.

Fortis Global Insurance Leads Trading

Fortis Global Insurance Plc emerged as the most actively traded stock after investors exchanged 610.68 million shares valued at N1.19 billion.

Despite leading the market by volume, the insurer closed 9.70 percent lower at N2.14, indicating that the heavy trading was driven largely by continued selling pressure.

Banking stocks also featured prominently among the day’s most active equities.

FCMB Group Plc traded 60.85 million shares worth N722.89 million, while Fidelity Bank Plc recorded 57.02 million shares valued at N1.18 billion.

Consolidated Hallmark Holdings Plc and Royal Exchange Plc completed the list of the five most actively traded stocks by volume.

HMCALL Records Second Consecutive Limit Gain

Buying interest remained concentrated in selected counters.

HMCALL Plc topped the gainers’ chart after appreciating 10.00 percent to N3.52, marking its second consecutive daily maximum gain.

Wapic Insurance Plc advanced 8.44 percent, while UAC of Nigeria Plc climbed 6.56 percent.

AVA Capital Plc continued its recovery with a 6.29 percent gain after suffering one of the steepest declines last week.

Caverton Offshore Support Group Plc also closed higher, gaining 5.32 percent.

The performance indicates investors continued to accumulate selected value stocks despite the broader market weakness.

Aradel Weighs on Market

Selling pressure remained widespread across several large and mid-cap stocks.

International Energy Insurance Plc declined the maximum 10.00 percent to lead the losers’ chart.

More significant for the broader market was the 9.99 percent decline in Aradel Holdings Plc, whose large market capitalisation made it one of the session’s biggest contributors to the fall in the benchmark index.

Universal Insurance Plc shed 9.41 percent, while Red Star Express Plc declined 9.26 percent for a second consecutive trading session.

Royal Exchange Plc also fell 8.62 percent.

The mixed performance within insurance stocks highlights continued sector rotation rather than broad-based buying or selling.

ETF Market Mixed, Bonds Unchanged

Exchange-traded funds recorded mixed performance.

SIAMLETF40 gained N73.40 to close at N2,390.00, while STANBICETF30 appreciated N41.20.

VETINDETF and MERGROWTH each advanced N4.00.

However, VETGRIF30 declined N2.00 to close at N105.00.

Meanwhile, the bond market remained unchanged with ADBB2021S1, BUA2027S1, CP27NGNGS1C, DAN2032S2TC and FG112034S2 all closing at their previous prices.

Market Outlook

Wednesday’s session reflected a market where trading activity has recovered but investor sentiment remains cautious.

The increase in trading volume and value indicates capital is still flowing through the market, yet the continued decline in the benchmark index suggests sellers remain in control in several large-cap counters.

Going into the next trading session, investors are likely to focus on corporate earnings, institutional transactions and bargain-hunting opportunities as the market seeks a floor after several consecutive days of declines.