Bearish sentiment resumes as NGX drops by N26bn

Bearish sentiment resurfaced in the Nigerian stock market on Thursday as investors lost N26bn, dragging the market capitalisation of the Nigerian Exchange to N67.7tn. The All-Share Index dipped by 41.01 points, or 0.04 per cent to close at 108,568.50, reflecting a one-week loss of 0.55 per cent, a four-week gain of 5.62 per cent, and a year-to-date growth of 5.48 per cent.

Despite the decline, market activity improved as investors traded 421.26 million shares worth N8.42bn in 13,269 deals. This represents a 23 per cent increase in volume, a two per cent drop in turnover, and a two per cent improvement in deals compared to the previous trading session.

Abbey Mortgage Bank led the gainers’ chart with a 10 per cent increase to close at N3.41 per share, followed by University Press, which gained 9.78 per cent to close at N5.05. Sovereign Trust Insurance rose by 9.57 per cent to N1.26, while Regency Alliance Insurance and The Initiates Plc appreciated by 7.58 per cent and 7.23 per cent to close at N0.71 and N4.30, respectively.

On the flip side, Union Dicon Salt topped the losers’ chart after shedding 9.77 per cent to close at N6.00 per share. Deap Capital Management & Trust followed with a 7.07 per cent decline to N0.92, while Computer Warehouse Group fell by 5.75 per cent to close at N8.20. Ikeja Hotel and Tantalisers lost 5.56 per cent and 4.88 per cent to close at N11.90 and N1.95 per share, respectively.

Ellah Lakes recorded the highest trading volume with 137 million shares, followed by Zenith Bank with 23 million, Guaranty Trust Holding with 20.8 million, and Jaiz Bank with 17.4 million shares.

Sectoral performance was mixed, with the NGX Consumer Goods Index gaining 0.69 per cent, the NGX Insurance Index up by 0.53 per cent, and the NGX Main Board Index appreciating by 0.08 per cent. However, the NGX Premium Index declined by 0.25 per cent, reflecting selling pressure on high-value stocks.

The PUNCH reported that the Nigerian Exchange rebounded on Wednesday as investors gained N505bn.