Nigerian Exchange Loses N260bn as Sell-Off Extends to 11 Sessions

The Nigerian Exchange (NGX) All-Share Index (ASI) extended its losing streak into midweek trading on Wednesday, shedding about N260 billion in market capitalisation as broad-based selling pressure persisted for the 11th consecutive trading session.

The stock market’s key performance indicators declined by 0.17%, reflecting sustained sell-offs in medium- and large-cap stocks across major sectors. The market began coming under pressure after the Central Bank of Nigeria lifted restrictions on participation in Open Market Operations (OMO) bills.

Some stockbrokers said the prolonged decline could be a significant sign that the market had become overbought.

Notable decliners included Zenith Bank, FCMB, Oando and Wema Bank, among others. Zenith Bank (-2.13%), Intbrew (-3.96%) and Jaiz Bank (-7.69%) led the losses, offsetting gains recorded by First Holdco (+0.86%), Nigerian Breweries (+0.72%) and Dangote Sugar (+1.47%).

The market index fell by 402.25 basis points to close at 238,682.92, while market capitalisation declined by N259.76 billion to N154.14 trillion.

Trading activity, however, increased during the session, with total volume of units traded and the total value of transactions rising by 9.66% and 44.90%, respectively. Stockbrokers reported that approximately 733.35 million units, valued at N34,524.11 million, changed hands in 49,210 deals.

FTG Insurance topped the volume chart, accounting for 18.30% of all units traded, followed by First Holdco with 12.15%, Accesscorp with 4.46%, Zenith Bank with 4.22% and Veritas Kapital with 3.91%.

First Holdco accounted for 32.13% of the total value of trades, making it the most actively traded stock on the exchange.

Neimeth led the gainers, rising by 9.66%, followed by NEM (+6.67%), Regal Insurance (+6.25%), Link Assurance (+5.62%), CMFC (+2.84%), NPF Microfinance Bank (+2.53%) and ten others.

A total of 41 stocks depreciated during the session. Fidson recorded the biggest decline, falling by 9.99%, followed by FTN Cocoa (-9.94%), International Energy Insurance (-9.74%), Livestock Feeds (-9.43%), Omatek (-9.42%) and Caverton (-9.09%).

Consequently, market breadth closed negative, with 16 gainers against 41 losers.

Sectoral performance was also largely negative, with four of the five major market sectors recording declines.

The Insurance sector led the losses, falling by 0.94%, followed by the Banking sector (-0.41%), Consumer Goods sector (-0.28%) and Oil & Gas sector (-0.11%). The Industrial Goods sector was the only gainer, edging up marginally by 0.001%.