LAGOS, Nigeria
Trading on the Nigerian Exchange Limited (NGX) began the week on a bearish note as investors took profits in First Holdco and several other stocks, sending the market’s capitalisation down by N137.12 billion.
The NGX All-Share Index declined by 265.99 points, or 0.11 per cent, to close at 239,085.17 points. The drop also trimmed the market’s year-to-date return to 53.64 per cent from 53.81 per cent at the end of the previous week.
Market breadth reflected the cautious sentiment, with 32 stocks closing lower compared with 18 gainers.
Red Star Express recorded the strongest advance, rising 9.86 per cent to N16.15 per share. University Press gained 9.38 per cent to close at N5.25, while UPDC advanced 5.97 per cent to N3.55.
Haldane McCall added 3.90 per cent to finish at N4.00, while Sunu Assurance gained 3.33 per cent to close at N3.10.
At the other end of the market, International Energy Insurance suffered the steepest decline, falling 9.82 per cent to N3.49 per share. Neimeth International Pharmaceuticals dropped 9.38 per cent to N7.25, while Fidelity Bank declined six per cent to N18.80.
Guinea Insurance fell 5.19 per cent to 73 kobo, while NPF Microfinance Bank declined 4.82 per cent to N3.95.
Trading Activity Surges
Despite the decline in the major market indicators, trading activity increased significantly during the session.
Total volume rose 60.5 per cent to 668.72 million shares, with transactions valued at N23.83 billion across 45,894 deals.
Fortis Global Insurance led activity by volume, with 205.336 million shares worth N412.925 million changing hands. United Bank for Africa followed with 81.334 million shares valued at N3.603 billion.
First Holdco recorded 40.414 million shares in transactions worth N5.174 billion, while FCMB Group traded 21.055 million shares valued at N238.692 million. Access Holdings recorded 17.867 million shares worth N484.184 million.
Investors Remain Cautious
Market analysts expect the equities market to remain relatively stable in the near term despite the recent profit-taking.
United Capital said investors could continue to favour companies with strong earnings, attractive valuations and reliable dividend prospects. However, continued profit-taking after the market’s strong gains earlier in the year could keep sentiment cautious and restrict further advances.
The firm also identified relative stability in the naira, improving investor confidence and upcoming corporate earnings reports as potential factors that could support the market.
With the NGX still delivering a strong year-to-date return, investors appear to be balancing the opportunity for further gains against the need to lock in profits following the market’s earlier rally.
