NGX market losses hit N2.93 trillion as stocks plunge for second day

NGX market losses reached N2.932 trillion in two trading sessions as investors continued to sell equities on the Nigerian Exchange Limited.

The market lost N1.17 trillion on Tuesday. However, losses deepened on Wednesday, when investors shed another N1.762 trillion.

The fresh decline pushed the market into another difficult session. Market capitalisation fell by 1.12 per cent to N157.493 trillion from N159.255 trillion recorded on Tuesday.

The All-Share Index also dropped sharply. It fell by 2,756.48 points, or 1.12 per cent, to close at 243,967.09.

The index had closed at 246,723.57 in the previous session. As a result, the market’s year-to-date return eased to 56.78 per cent.

Stocks drive fresh decline

Several major stocks contributed to the decline. BUA Foods, Unilever, John Holt, AVA Capital and Austinlaz recorded losses during the session.

However, some companies moved against the wider trend.

International Energy Insurance led the gainers after its share price rose by 10 per cent to N4.40.

Ecobank Transnational Incorporated followed closely. Its shares gained 9.93 per cent to close at N6.45.

Trans-Nationwide Express also advanced by 9.77 per cent to close at 21k per share.

Overall, the market recorded 28 gainers and 28 losers, leaving market breadth evenly balanced.

Trading activity falls

Meanwhile, trading activity weakened considerably.

The volume of shares traded fell by 62.78 per cent to 1.46 billion shares. Those trades were worth N20.94 billion and were executed across 39,085 transactions.

Fortis Global Insurance dominated trading volume. It recorded 853.16 million shares, representing 58.63 per cent of total volume.

First Holding Company led trading by value. Investors exchanged shares worth N3.90 billion in the company, accounting for 18.61 per cent of the total value traded.

The latest figures underline the pressure facing the Nigerian equities market. For investors, the key question now is whether the sell-off will continue or whether bargain hunters will return.