NGX Index Tumbles by 0.12% on Sustained Sell Pressure

By Dipo Olowookere

The Nigerian Exchange (NGX) Limited further depreciated by 0.12 per cent on Tuesday due to sustained sell pressure from the financial services sector.

Data from the bourse showed that happenings in the United States banking sector, with the collapse of two major financial institutions, sent shivers down the spines of investors in Nigeria, causing their exposure to equities in the sector.

Shares prices of the foremost Nigerian lenders on the stock exchange, GTCO, Access Holdings, and UBA, weakened yesterday due to the sell-down.

At the close of business, the insurance index shed 1.91 per cent, the banking space dropped 0.24 per cent, and the industrial goods counter declined by 0.10 per cent, while the consumer goods sector gained 0.01 per cent, with the energy counter remaining flat.

Consequently, the All-Share Index (ASI) decreased by 65.47 points to 55,722.90 points from 55,788.37 points, as the market capitalisation went down by N35 billion to N30.356 trillion from N30.391 trillion.

Chams led the losers’ log after its stock value dropped by 8.00 per cent to 23 Kobo, as Prestige Assurance declined by 7.32 per cent to 38 Kobo. Linkage Assurance shed 6.82 per cent to 41 Kobo, UPDC depreciated by 6.80 per cent to 96 Kobo, and Wema Bank slumped by 6.05 per cent to N4.04.

Conversely, the gainers’ chart was topped by Nigerian Enamelware, which improved yesterday by 9.57 per cent to settle at N17.75. FTN Cocoa grew by 7.69 per cent to 28 Kobo, Sterling Bank expanded by 3.42 per cent to N1.51, UAC Nigeria jumped by 3.26 per cent to N9.50, and NGX Group rose by 2.69 per cent to N26.70.

In all, the domestic bourse recorded 17 price losers and nine price gainers, indicating a negative market breadth and a persistent weak investor sentiment.

On the activity chart, traders bought and sold 199.3 million stocks worth N2.8 billion in 3,898 deals versus the 179.0 million stocks worth N2.6 billion traded in 4,296 deals on Monday, implying a decline in the number of deals by 9.26 per cent and an increase in the trading volume and value by 11.34 per cent and 7.69 per cent apiece.

Sterling Bank recorded the highest trading volume after it exchanged 31.1 million shares, Neimeth sold 20.2 million equities, Zenith Bank traded 16.5 million stocks, Chams transacted 16.1 million equities, and United Capital sold 12.8 million shares.