Market Loses N440bn as Energy, Banking Stocks Decline

Trading activity on the Nigerian Exchange Limited (NGX) was heavily influenced by profit-taking and divestments in major blue-chip equities on Thursday, particularly within the energy, banking and insurance sectors, wiping N440bn from the market capitalisation.

High-cap stock Aradel Holdings recorded significant losses, declining 5.40 per cent to close at N1,300.00, down from N1,374.20 per share.

Other notable decliners included Oando, which contracted 3.68 per cent to close at N34.00, and United Bank for Africa, dropping 2.17 per cent to N45.00. Institutional banking heavyweights Access Holdings, Zenith Bank and Guaranty Trust Holding Company also traded in negative territory, slipping 0.74 per cent to N26.95, 0.48 per cent to N123.40 and 0.23 per cent to N127.60, respectively.

Market breadth remained firmly negative as decliners outnumbered gainers across the board.

In the insurance space, International Energy Insurance topped the losers’ chart with a 9.85 per cent slump to N4.30, closely followed by Coronation Insurance, which contracted 9.84 per cent to N2.20, and Fortis Global Insurance, dropping 9.76 per cent to N1.85. Capital market operators such as AVA Capital and VFD Group also posted notable dips, contracting 7.89 per cent and 3.25 per cent to close at N7.00 and N11.90, respectively.

Despite the prevailing bearish sentiment, selective buying interest created pockets of gains in real estate, logistics, consumer goods and industrial lines.

Haldane McCall emerged as the top gainer on the exchange, rising 9.38 per cent to close at N3.85 per share, up from N3.52. Trans-Nationwide Express followed with an 8.90 per cent gain to settle at N3.06, while McNichols advanced 8.33 per cent to end at N5.20. Electrical manufacturer Cutix appreciated 2.56 per cent to N2.40, and Nigerian Breweries gained 1.23 per cent to finish at N69.75 per share.

Across broader sectoral indices, performance was largely depressed. The NGX Oil and Gas Index recorded the steepest decline, dropping from 4,960.82 points to 4,837.50 points, while the NGX Banking Index eased to 2,493.33 points from 2,503.67 points.

The NGX Insurance Index weakened to 1,093.95 points, and the NGX Pension Index moderated to 12,289.06 points. Conversely, the NGX Consumer Goods Index and NGX Industrial Index provided a modest buffer, edging higher to 4,041.35 points and 10,378.74 points, respectively.

In the Exchange-Traded Funds segment, market movements reflected mixed investor sentiment. Vetiva Consumer Goods ETF posted the highest appreciation, rising 7.44 per cent to N56.44, while Lotus Halal Equity ETF gained 3.23 per cent to close at N128.00. On the flip side, Vetiva Banking ETF suffered the largest contraction among funds, dropping 6.48 per cent to N29.00, alongside SIAML Pension ETF 40, which slid 3.81 per cent to finish at N2,299.00.

In terms of market turnover, activity was dominated by high-volume trades in financial services and logistics. Fortis Global Insurance generated massive volume in the main board insurance sub-sector, while Sterling Financial Holdings and Trans-Nationwide Express recorded substantial trading volumes.

Debt securities traded flat with no price variations recorded across government and corporate bond issues, leaving the Central Bank of Nigeria’s monetary policy rate unchanged at 26.50 per cent as investors continue to evaluate macroeconomic indicators.