The NGX market experienced a downturn on Monday, shedding N239 billion in market capitalization. Opening at N59.416 trillion, the market capitalization closed at N59.177 trillion, marking a 0.40 per cent decline. Correspondingly, the All-Share Index dropped by 0.40 per cent or 422 points to settle at 104,663.34, compared to 105,085.25 recorded on Friday. This decline led to a decrease in the Year-To-Date (YTD) return to 39.97 per cent.
The negative trend was attributed to selloffs in prominent companies such as MTN Nigeria, Guaranty Trust Holding Company (GTCO), Zenith Bank, Transcorp, and Chams. Mr. David Adonri, Vice Chairman of Highcap Securities Ltd., explained that the market’s performance reflected a slight fatigue following an extended rally driven by demand.
Adonri noted that the selloffs primarily affected high capitalization stocks, magnifying any decline in their prices. He observed that Tier-one banks, whose share prices had appreciated over recent weeks, experienced relief.
Furthermore, Adonri suggested that recent policies by the Central Bank of Nigeria (CBN), including the proposed bank recapitalization, might have influenced investor sentiment towards stocks.
On the downside, McNichols Plc recorded the highest decline, dropping by 9.30 per cent to close at N1.17 per share. Daar Communications followed with an 8.97 per cent decrease, closing at 71k, while UPDC Real Estate Investment Trust lost 7.89 per cent to close at N1.40 per share. MTN also declined by 7.58 per cent to close at N247.50, and Regency Alliance Insurance fell by 5.13 per cent to close at 37k per share.
In contrast, ABC Transport led the gainers, rising by 9.86 per cent to close at 78k per share. NEM Insurance followed with a 9.77 per cent increase to close at N7.30, and Livestock Feed Plc went up by 9.68 per cent to close at N1.70 per share. NGX Group appreciated by 9.55 per cent to close at N24.10, while Thomas Wyatt rose by 9.34 per cent to close at N1.99 per share.
Despite the downturn, market breadth remained positive with 27 gainers and 18 losers. Trade turnover exceeded the previous session, with transaction value increasing by 115.75 per cent. A total of 287.45 million shares valued at N10.80 billion were exchanged in 9,077 deals, compared to 217.21 million shares valued at N5.01 billion exchanged in 6,457 deals in the previous session.
UBA led the volume chart with 46.23 million shares traded worth N1.19 billion, followed by GTCO with 35.35 million shares worth N1.65 billion. Transcorp also traded 21.51 million shares valued at N324.98 million, Zenith Bank traded 21.49 million shares worth N834.06 million, and FBN Holdings traded 17.91 million shares worth N698.14 million.
