NGX loses N21bn as selloffs hit MTN, PZ,Jaiz Bank

Onome Amuge

The Nigerian Exchange (NGX) suffered a decline in market capitalisation, losing over N21 billion in value, driven by the sell-off of major stocks, including MTN Nigeria, PZ Cussons, and Jaiz Bank, exerting pressure on the overall market.

Wednesday’s trading session ended in the negative territory as key performance indicators slid by 0.04 percent. 

The All-Share Index (ASI) shed 34.84 basis points to close at 98,023.23, reflecting a third consecutive day of decline.

The overall market capitalisation of equities listed on the NGX dipped by N21.11 billion, falling from N59.41 trillion to N59.40 trillion. This decline was attributed to the widespread selloffs in major stocks, which overshadowed the gains made by the smaller, less-capitalized stocks.

Over the past three trading days, the NGX has lost N864 billion in market capitalisation, indicating a significant downward trend in the stock market.

On Wednesday, the NGX struggled against the headwinds of profit-taking activities in major stocks, such as MTN Nigeria (MTNN) and 22 others, that weakened its performance.

Despite the downward trend, market activities saw a notable uptick amid the release of third quarter earnings reports, which fueled higher volumes and values traded.

The total volume and total value of trades executed on the NGX both increased significantly, with volume jumping by 34.97 percent and value surging by 71.43 percent respectively.

Approximately 538.96 million units, valued at a total of N15,301.45 million, were transacted across 10,028 deals on the NGX. Amongst all the stocks traded, JAIZBANK stood out as the most traded stock in terms of volume, representing 19.82 percent of the total traded volume.

Other stocks that contributed significantly to the trading volume on the NGX were United Bank for Africa (UBA), Chams Plc (CHAMS), MTN Nigeria (MTNN) and Zenith Bank (ZENITHBANK). These stocks collectively accounted for 17.82 percent, 14.99 percent, 5.72 percent and 4.29 percent respectively of the total trading volume.

SKYAVN, UPL, and VITAFOAM emerged as today’s top gainers with each stock recording a 10.00 percent increase in their prices. Other stocks that saw significant price gains include EUNISELL, which appreciated by 9.93 percent, NAHCO by 9.89 percent, NEM by 8.86 percent, CONHALLPLC by 8.57 percent, and DAARCOMM by 8.47 percent.

Of the stocks traded on the NGX, a total of 23 stocks recorded price declines. Two stocks, PZ and JAIZBANK, led the pack of decliners, with each suffering a 10.00 percent depreciation in their share prices. 

Other notable decliners include UPDC (-9.38%), INTENEGINS (-8.97%), NGXGROUP (-8.32%), MTN Nigeria (MTNN) (-4.84%), and MAYBAKER (-2.01%).

Today’s market session was positive, as the market breadth registered 33 gainers and 23 losers. The breadth indicates a bullish market sentiment, with more stocks advancing than declining.

The banking index was the biggest loser among the five major market sectors, shedding 1.73 percent of its value. The industrial sector also saw a decline, losing 0.24 percent, as well as the oil & gas sector, which lost 0.22 percent.

However, the insurance and consumer goods sectors managed to buck the bearish trend, recording gains of 0.71 percent and 0.11 percent respectively.