Selling Pressure Weakens Nigerian Stock Market by 0.49%

By Dipo Olowookere

The Nigerian Exchange (NGX) Limited depreciated by 0.49 per cent on Thursday, driven by selling pressure on banking equities, especially those in the tier-1 category.

The likes of GTCO, FBN Holdings, Access Holdings witnessed sell-offs during the trading session, contributing to the weak investor sentiment observed at the Nigerian stock market.

According to data obtained by Business Post, the NGX ended with 29 price losers and 24 price gainers, indicating a negative market breadth index.

FBN Holdings ended as the heaviest price decliner after it shed 9.86 per cent to settle at N26.50, Secure Electronic Technology fell by 9.64 per cent to 75 Kobo, Deap Capital shrank by 9.46 per cent to 67 Kobo, Champion Breweries fell by 7.04 per cent to N3.30, and Tantalizers depreciated by 6.00 per cent to 47 Kobo.

Conversely, Multiverse gained 9.91 per cent to trade at N8.54, AXA Mansard Insurance appreciated by 9.76 per cent to N4.50, SCOA Nigeria rose by 9.76 per cent to N1.35, Infinity Trust Mortgage Bank jumped by 9.52 per cent to N1.61, and The Initiates expanded by 9.52 per cent to N1.15.

Yesterday, the banking index lost 2.01 per cent and the industrial goods counter fell by a marginal 0.01 per cent, while the insurance and the consumer goods sectors improved by 1.83 per cent and 0.03 per cent apiece, with the energy space closing flat.

As for the All-Share Index (ASI), it went down by 350.72 points to 71,457.92 points from 71,808.64 points, and the market capitalisation weakened by N192 billion to N39.103 trillion from N39.295 trillion.

During the session, investors bought and sold 436.6 million shares worth N7.6 billion in 7,096 deals versus the 690.0 million shares worth N12.1 billion traded in 8,412 deals a day earlier, representing a decline in the trading volume, value, and the number of deals by 36.73 per cent, 37.19 per cent and 15.64 per cent, respectively.

Universal Insurance topped the activity chart after the sale of 52.7 million stocks for N13.5 million, Veritas Kapital traded 44.6 million shares valued at N15.3 million, Nigerian Breweries exchanged 37.5 million equities worth N1.4 billion, Access Holdings transacted 34.7 million stocks valued at N705.9 million, and Zenith Bank sold 31.6 million shares for N1.1 billion.