NGX sheds N544.5bn as banking stocks trigger sixth straight market decline
The Nigerian Exchange (NGX) extended its losing streak as investors continued to cash in on recent gains, wiping N544.5 billion from the market’s value in the latest trading session, with First HoldCo and Fidelity Bank among the biggest drags on performance.
The selloff pushed the NGX All-Share Index (ASI) down by 0.35% to 241,611.23 points, while total market capitalisation fell to N155.97 trillion from N156.52 trillion recorded in the previous session. Despite the pullback, the market has still delivered a 55.26% year-to-date return.
The latest decline marks the sixth consecutive negative trading session, reflecting sustained profit-taking after the market’s strong rally earlier this month.
Banking stocks weigh on sentiment
Large-cap banking stocks bore the brunt of investors’ selling pressure.
First HoldCo dropped 5.71% to close at N132.00, while Fidelity Bank lost 6.59%, making it one of the session’s biggest heavyweight decliners. NGX Group also slipped 3.83%, adding to the pressure on the benchmark index.
Other major stocks that ended lower included:
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Unilever Nigeria (-3.64%)
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Dangote Sugar (-1.57%)
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GTCO (-0.39%)
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UBA (-0.33%)
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Oando (-0.28%)
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Zenith Bank (-0.16%)
Winners fail to offset broad losses
Although several stocks posted gains, they were insufficient to reverse the broader market weakness.
HM Call led the gainers after rising 9.97% to N4.84, followed by Veritaskap, which advanced 7.09%. Tantalizer climbed 5.26%, while RT Briscoe and Regal Insurance also closed higher.
On the downside, Red Star Express topped the losers’ chart with a 10% decline, while Trans-Nationwide Express, Meyer & Baker, Chellarams and FTG Insurance also posted steep losses.
Trading activity slows sharply
Investor participation weakened significantly during the session.
Trading volume plunged 67.7% to 429.84 million shares, although transactions were still valued at N27.48 billion across 35,683 deals. Sterling Financial Holdings recorded the highest trading volume, while MTN Nigeria accounted for the largest value of trades at N9.76 billion, representing more than one-third of total market turnover.
Banking sector records steepest decline
Sectoral performance was largely negative, with the NGX Banking Index falling 1.82%, making it the worst-performing major sector.
The Consumer Goods Index slipped marginally, while the Oil and Gas Index also edged lower. The Insurance Index managed a slight gain, and both the Industrial Goods and Commodity indices closed flat.
Investors watch for a market rebound
The continued correction comes after the market’s record rally earlier in August, when the benchmark index reached a historic peak before profit-taking set in.
Market analysts believe the near-term direction of the NGX will depend on whether bargain hunters begin accumulating undervalued large-cap stocks or if selling pressure in heavyweight banking counters continues to dominate trading
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