The Nigerian Exchange (NGX) saw its All-Share Index fall by 0.05% on Thursday, continuing its decline for the fifth straight day. Market capitalization also decreased, signalling weak investor sentiment. Despite modest gains in certain sectors, overall trading activities diminished significantly, revealing challenges ahead for the market.
On Thursday, the Nigerian Exchange (NGX) reported a decline in its All-Share Index by 0.05%, closing at 104,858.77 basis points. This marks the fifth consecutive day of negative performance for the local bourse due to sell-offs in major bank stocks like Zenith Bank and Access Holdings. The market capitalization subsequently fell by 0.05% to N65.75 trillion, equating to a loss of N35.3 billion in equities by the end of the session.
This bearish trend has impacted the Month-to-Date (MTD) and Year-to-Date (YTD) returns, which have adjusted to -2.8% and +1.9%, respectively. Investor sentiment appeared weak, as evidenced by the market breadth, which showed 14 advancing stocks against 28 decliners. Notable gainers included Computer Warehouse Group, Veritas Capital, and Wema Bank, while Livestock Feeds and UACN Property Development Company led the losing side.
Sector performance displayed a mixed result; the Insurance and Consumer Goods sectors increased by 0.13% and 0.39%, respectively, whereas the banking sector experienced a drop of 0.43%. Other sectors, specifically Oil/Gas, Industrial Goods, and Commodities, remained unchanged at 0%.
Trading activities were notably subdued, with declines in the number of deals and transaction volumes. Specifically, there was a 15.23% decrease in transactions, a 77.28% reduction in total volume, and a 49.51% fall in transaction value. In total, 10,182 transactions were executed, aggregating to N6.25 billion in value and 310.53 million units traded, with Fidelity Bank being the most traded stock by volume at 40.03 million units. Conversely, Zenith Bank topped the charts in trading value at N1.07 billion.
The Nigerian Exchange has experienced significant bearish trends, reflected in the continuous decline of the All-Share Index for five days and a decrease in market capitalization. Weak investor sentiment and negative market breadth indicate ongoing challenges. Despite some sectors showing modest gains, overall trading activity remains low, with key transactions declining sharply. This situation warrants close monitoring as the market navigates through lingering uncertainties.
Original Source: www.zawya.com
