Onome Amuge
The Nigerian equities market extended its downturn on Wednesday as selling pressure in several mid- and large-cap names dragged the Nigerian Exchange (NGX) All-Share Index (ASI) marginally lower, despite a pockets-of-strength rally in a handful of small-cap counters. The session closed with the benchmark index slipping 0.05 per cent to 146,862 points, deepening the week’s negative momentum and erasing a further N33.79 billion in equity value. Total market capitalisation ended the day at N93.62 trillion.
The trading session was dominated by heavy declines in stocks such as Chams Plc, Haldane McCall (HMCALL), and UAC Nigeria (UACN), which ranked among the worst performers of the day and were central contributors to the overall market weakness. Chams fell by the maximum allowable limit of 10 per cent to close at N3.06, down from N3.40 previously, marking one of its sharpest one-day declines this month. Haldane McCall shed 8.88 per cent to end at N4.00 per share, while UACN dropped 7.20 per cent to N80.80, extending a correction phase that began earlier in the quarter following muted investor response to its recent corporate disclosures.
Insurance names were also among the hardest hit. SUNU Assurance and Linkage Assurance (LINKASSURE), both already under pressure from weaker premium growth and rising claims ratios, registered further declines as investors rotated out of the segment. The Insurance Index closed as the day’s worst-performing sector, down 0.39 per cent, signalling persistent investor scepticism about earnings resilience in an inflationary environment.
Despite the official market breadth reading of 1.2x—indicating more gainers than losers, the magnitude of losses in the biggest decliners overshadowed advances in smaller-cap stocks. A separate breadth measure recorded 21 advancers versus 32 decliners and 93 unmoved stocks across 19,161 deals.
The day’s top performers including Japaul Gold, Prestige Assurance and Mecure, posted notable gains of 10 per cent, 9.40 per cent and 7.72 per cent, respectively. Japaul Gold continued to ride an extended rally fuelled by speculative plays in resource-linked counters, closing at N2.53 from N2.30. Prestige Assurance and Mecure Healthcare also saw renewed buying interest, with the former closing at N1.63 and the latter at N34.90.
Other gainers such as TIP and Consolidated Hallmark Insurance (CONHALLPLC) contributed to stabilising the tape but lacked the weight to offset the breadth of losses in financials and consumer-linked stocks.
Yet, analysts noted that the day’s appreciation in these names was largely technical, driven by bargain hunting after earlier dips rather than structural portfolio reallocations. None of the gainers belonged to the heavyweight segments that typically steer index direction, tempering their effect on the broader market.
Four of the NGX’s key sectors ended the session in the red. Consumer Goods lost 0.14 per cent, continuing a multi-week decline amid concerns about constrained household spending power and rising input costs. Oil & Gas fell by 0.08 per cent as investors priced in volatility in global crude benchmarks and uncertainty surrounding domestic regulatory reforms.
Banking stocks slipped 0.04 per cent, a restrained move but one that reflects cautious trading as lenders weigh the impact of higher reserve requirement ratios and elevated funding costs. Industrial Goods and Commodity names were the only segments that closed flat, indicating a pause rather than a reversal in sentiment.
Liquidity conditions weakened materially. Total share volume fell 62.15 per cent to 747.09 million units, the lowest in several sessions, while transaction value plummeted 58.90 per cent to N12.43 billion.
Cutix emerged as the volume leader with 122 million shares traded across 215 deals, reflecting heightened turnover following recent positioning by speculative investors. First City Monument Bank (FCMB) followed with 80 million shares in 389 deals, signalling consistent retail and institutional engagement with the counter. Consolidated Hallmark Insurance moved 71 million shares in 44 deals, buoyed by its earlier inclusion among the session’s small-cap gainers.
On the value index, Guaranty Trust Holding Company (GTCO) led the market with transactions worth N2.7 billion across 963 deals, maintaining its status as one of the NGX’s most liquid names. Fidelity Bank followed with N1.2 billion in traded value across 426 deals, while Access Holdings recorded N905 million worth of trades in 1,119 transactions.
The declines in both value and volume demonstrate a market operating below typical liquidity thresholds. Dealers attributed the slump to a wait-and-see stance ahead of central bank communiqués and the absence of major earnings catalysts.
