Stock Market Experiences N192 Billion Decline in Equities Trading
The equity market of the Nigerian Exchange Ltd. (NGX) experienced a reduction in trading activities on Thursday, resulting in a decline of N192 billion in market capitalisation. This move was mainly influenced by a sell-off in Tier-one bank shares, particularly those of Zenith, Guaranty Trust Company (GTCO), and United Bank for Africa (UBA).
Consequently, the market capitalisation decreased to N39.103 trillion from N39.295 trillion, representing a 0.49 per cent decrease. In addition, the All-Share Index (ASI) also saw a 0.49 per cent decline, dropping by 350.72 points to close at 71,457.92.
The year-to-date (YTD) return decreased to 39.43 per cent, reflecting the impact of the sell-off in bank shares. Market breadth closed negative, with 26 stocks declining and 21 advancing.
The most significant decline was observed in First Bank of Nigeria Holdings, which experienced a 9.86 per cent decrease to close at N26.50 per share. Other notable decliners included Secure Electronic Technology, Deep Capital Management, Champion Breweries, and Tantalizers.
Conversely, Multiverse Mining and Exploration led the pack of gainers, recording a 9.91 per cent increase to close at N8.54 per share. AXA Mansard Insurance, Scoa Nigeria, Infinity Trust Mortgage Bank, and The Initiates Plc also saw significant gains during the trading session.
In terms of trading volume, Universal Insurance recorded the highest volume of shares sold at 52.73 million, followed by Veritas Kapital, Nigerian Breweries, Access Holdings and Zenith Bank. Overall, a total of 436.56 million shares valued at N7.55 billion were exchanged in 7,096 deals.
This represents a decrease from the previous trading session, during which a total of 690.01 million shares valued at N12.1 billion were exchanged in 8,412 deals.
The decline in equity trading highlights the volatility of the stock market and the impact of sell-offs on market capitalisation. Investors will be closely monitoring the market in the coming days to assess whether this trend continues or if there is potential for a rebound.
It is crucial for investors to approach market fluctuations with a long-term perspective and seek guidance from financial experts to make informed decisions.
