Nigerian stocks lose N41 billion as large caps drag market lower

Trading on the Nigerian Exchange Limited (NGX) on Wednesday, reversed earlier gains with the equities market closing marginally lower as losses in large and medium-capitalised stocks outweighed broad-based buying interest.

The All-Share Index (ASI) declined 63.46 points, representing a 0.03% loss, to close at 246,019.17 points, compared with 246,082.63 points in the previous session.

Market capitalisation fell by approximately N41 billion to N158.915 trillion, while investor sentiment remained positive, with 33 stocks advancing against 29 decliners.

Market summary:

• All-Share Index (ASI): 246,019.17 points, down 0.03%.
• Market capitalisation: N158.915 trillion, down N41 billion.
• Market breadth: 33 gainers vs 29 decliners.
• Trading volume: 426.840 million shares, down 34.47%.
• Market turnover: N28.438 billion.
• Total deals: 41,475.

Top 5 Gainers:

• Tripple Gee & Company: up 10.00% to N2.86, from N2.60.
• Sovereign Trust Insurance: up 9.71% to N2.26, from N2.06.
• Oando: up 9.43% to N38.30, from N35.00.
• McNichols: up 9.09% to N5.40, from N4.95.
• NEM Insurance: up 7.99% to N34.45, from N31.90.

Top 5 Losers:

• NASCON Allied Industries: down 10.00% to N175.50, from N195.00.
• Beta Glass: down 9.99% to N506.60, from N562.90.
• Academy Press: down 9.76% to N5.55, from N6.15.
• CWG: down 9.35% to N19.40, from N21.40.
• Learn Africa: down 9.20% to N7.90, from N8.70.

Driving the numbers:

The market’s marginal decline was driven primarily by price depreciation in large and medium-capitalised stocks, including Beta Glass, NASCON Allied Industries, Stanbic IBTC Holdings, CWG and Access Holdings.

• NASCON Allied Industries recorded the steepest decline among the major losers, falling 10.00% to N175.50, while Beta Glass shed 9.99% to N506.60.
• CWG also declined 9.35% to N19.40, while losses in Stanbic IBTC Holdings and Access Holdings added pressure to the broader market.
• On the upside, Tripple Gee & Company led the gainers with a 10.00% advance to N2.86, followed by Sovereign Trust Insurance, which gained 9.71% to N2.26.

Oando rose 9.43% to N38.30, while McNichols and NEM Insurance gained 9.09% and 7.99%, respectively.

Volume and value contribution:

Trading activity weakened during the session, with total volume traded falling 34.47% to 426.840 million shares.

• The shares were valued at N28.438 billion and exchanged in 41,475 deals.
• Access Holdings topped the activity chart by volume, with 33.220 million shares valued at N1.032 billion.
• Stanbic IBTC Holdings followed with 28.743 million shares worth N4.114 billion, while Sterling Financial Holdings Company traded 19.606 million shares valued at N150.242 million.

Chams Holding Company recorded 18.560 million shares worth N71.584 million, while Guaranty Trust Holding Company traded 15.078 million shares valued at N2.008 billion.

What you should know:

The marginal decline came despite positive market breadth, suggesting that buying interest remained relatively broad but was insufficient to offset losses in key large-cap stocks.

• The session also marked a moderation in trading activity, with both volume and turnover declining sharply from the previous session.
• Cowry Assets Management Limited expects market sentiment to remain positive, supported by improved investor confidence following the FTSE Russell reclassification confirmation.
• The outlook suggests that investor confidence remains intact despite the day’s marginal decline, with market participants continuing to position for further gains.

The immediate performance of large-cap stocks will remain important, as renewed buying interest in these counters could determine whether the ASI resumes its upward trajectory.