Investors Lose N2.42 Trillion as NGX Suffers Sharp Weekly Decline

Investors on the Nigerian Exchange Limited (NGX) lost N2.422 trillion in market value during the week as sustained selling pressure dragged major market indicators lower, extending a bearish sentiment across the equities market.

The decline saw the NGX All-Share Index (ASI) fall by 1.65 per cent, closing the week at 232,049.02 points, compared with 235,941.27 points recorded in the previous week.

Similarly, market capitalisation dropped by 1.60 per cent, declining from N151.327 trillion to N148.905 trillion, wiping N2.422 trillion off investors wealth.

The broad market weakness also affected most sectoral indices, with only a handful recording gains during the trading week.

The NGX Consumer Goods (CG) Index, NGX Banking Index, NGX AFR Bank Value Index, NGX AFR Dividend Yield Index, and NGX MERI Value Index bucked the trend, appreciating by 2.40 per cent, 3.51 per cent, 3.28 per cent, 9.93 per cent and 0.56 per cent, respectively.

Market activity also weakened during the week, reflecting reduced investor participation.

A total of 2.324 billion shares valued at N134.486 billion were traded in 249,328 deals, compared with 3.075 billion shares worth N254.614 billion exchanged in 287,157 deals during the previous week.

The Financial Services sector remained the market's busiest, accounting for 1.523 billion shares valued at N47.542 billion in 105,230 transactions.

The sector contributed 65.53 per cent of total trading volume and 35.35 per cent of total transaction value.

The Information and Communications Technology (ICT) sector ranked second with 198.821 million shares worth N32.622 billion traded in 29,905 deals.

The Consumer Goods sector followed, recording 151.635 million shares valued at N10.933 billion across 23,951 transactions.

Among individual stocks, trading in Access Holdings Plc, Fidelity Bank Plc, and Chams Holding Company Plc dominated the market, accounting for 485.749 million shares worth N7.656 billion in 17,843 deals.

The three stocks represented 20.90 per cent of the total equity trading volume and 5.69 per cent of the total market value traded during the week.

Market breadth weakened significantly as 78 listed equities closed lower, compared with 53 decliners recorded in the previous week.

Only 11 stocks posted gains during the week, a sharp drop from 40 gainers recorded a week earlier, while 57 equities closed unchanged, slightly higher than the 53 recorded previously.

Among the biggest losers were International Energy Insurance, First HoldCo, John Holt, Nigerian Aviation Handling Company (NAHCO) and Zichis Agro-Allied Industries, which shed N2.05, N14.00, N2.40, N31.00 and N5.00, respectively.

On the positive side, Cornerstone Insurance, Academy Press, Conoil, Neimeth Pharmaceuticals, and Ikeja Hotel emerged as the week's top-performing stocks, gaining 60 kobo, 65 kobo, N16.00, 40 kobo and N1.45, respectively.

Meanwhile, the Nigerian Exchange notified dealing members and investors that trading in the shares of Fortis Global Insurance Plc was suspended with effect from Wednesday, June 17, to facilitate the reconstruction of the company's share capital.

According to the NGX, the temporary suspension will enable the company's registrars and the Central Securities Clearing System (CSCS) Plc to reconcile shareholder records ahead of listing the reconstructed shares.

The Exchange said the exercise is also necessary to determine shareholders eligible to receive the reconstructed shares before trading resumes.