Onome Amuge
The equities market opened the week on a sour note, with investors losing about ₦246 billion at the close of trading on Monday, as a wave of sell-offs in major consumer goods and energy stocks dragged the market deeper into negative territory.
The benchmark All-Share Index (ASI) of the Nigerian Exchange Limited (NGX) fell by 0.25 per cent to 153,739.11 points, down from 154,126.45 points recorded the previous trading session. Market capitalisation similarly declined from N97.8 trillion to N97.5 trillion.
The day’s decline was largely driven by losses in Honeywell Flour Mills, Northern Nigeria Flour Mills (NNFM), and Aradel Holdings, which were among the session’s biggest losers.
Honeywell Flour Mills led the losers’ chart, shedding a full 10 per cent to close at N18.00 per share, compared with N20.00 at the previous session. The selloff came despite the company’s recent efforts to consolidate operations and manage cost pressures following last quarter’s mixed earnings. The sharp fall erased part of the gains the stock recorded earlier in October, when it had climbed on the back of renewed investor optimism in the consumer goods segment.
Northern Nigeria Flour Mills, another major casualty, fell by 9.98 per cent to N84.30 per share from N93.65. Traders attributed the drop to sustained sell pressure after recent sector-wide adjustments in valuation multiples for flour and milling companies.
In the energy sector, Aradel Holdings, one of the most actively traded oil and gas companies on the NGX, lost 9.21 per cent to close at N710.00, down from N782.00 per share. Market watchers noted that investors appear to be rotating out of the counter following months of sustained price appreciation. The decline in Aradel’s stock weighed heavily on overall market sentiment, given its influence within the oil and gas segment of the bourse.
Despite the overall market decline, trading activity remained robust. Data from the NGX showed that investors exchanged a total of 627.5 million shares valued at N25 billion, executed across 36,425 deals. The high turnover was driven by strong interest in banking stocks, which dominated both the volume and value charts.
United Bank for Africa (UBA) led the activity table with 136 million shares traded in 1,020 deals, worth approximately N5.5 billion. Aso Savings and Loans followed with 108 million shares changing hands in 888 transactions, while Access Holdings Plc traded 68 million shares in 1,855 deals.
On the value index, Guaranty Trust Holding Company (GTCO) followed closely behind UBA, with N4.5 billion worth of shares traded across 1,785 transactions, while Okomu Oil Palm Plc recorded trades valued at N2.2 billion in 801 deals.
The market breadth, a measure of investor sentiment, was negative, with 38 stocks advancing, 19 declining, and 89 remaining unchanged.
Amid the broader downturn, a handful of smaller-cap companies recorded significant gains. Union Dicon Salt Plc led the gainers’ chart, rising 9.93 per cent to close at N7.75, up from N7.05. Omatek Ventures also gained 9.92 per cent to finish at N1.33, while Nigerian Aviation Handling Company (NAHCO) advanced 7.62 per cent to N113.00 per share.
