Sell-offs in bellwether stocks, including BUA Foods Plc, MTN Nigeria Communications Plc and Stanbic IBTC Holdings Plc, dragged the Nigerian equities market lower on Tuesday.
The downturn erased about N1.14tn in investor value and halted the market’s recent bullish momentum.
Data from Nigerian Exchange Limited showed that the All-Share Index declined by 0.91 per cent to close at 194,484.61 points.
Market capitalisation also dropped by 0.91 per cent to N124.83tn. As a result, the year-to-date return moderated to 24.98 per cent.
The decline came a day after the NGX issued an investor alert. The Exchange said it had observed significant price movements in the shares of some listed companies in recent trading sessions.
It advised investors to base decisions on publicly available information and a careful assessment of companies’ fundamentals, risk profile and financial performance.
The NGX said it would continue to monitor trading activity to ensure market integrity and compliance with its rules.
“Investors are strongly advised to exercise due diligence before making investment decisions. Avoid speculative trading based on rumours or unverified information. Consult licensed stockbrokers or investment advisers where necessary. The Exchange remains committed to maintaining a fair, orderly, and transparent market,” the Exchange stated.
According to Cowry Asset Management Limited, investor sentiment remained weak amid a broad-based sell-off. Market breadth closed negative at 0.66x, with 27 stocks advancing compared with 40 decliners.
Sectoral performance was mixed. The Banking, Oil and Gas, and Industrial Goods indices rose by 1.23 per cent, 0.15 per cent and 1.92 per cent, respectively.
However, the Insurance and Consumer Goods indices fell by 1.31 per cent and 4.74 per cent, offsetting the gains. The Commodity Index closed flat.
Separate analysis by CardinalStone attributed the bearish close mainly to sell-offs in BUA Foods, MTN Nigeria, Stanbic IBTC and Nigerian Breweries Plc.
Trading activity showed mixed performance. The number of deals declined by 24.05 per cent to 72,218 transactions. Trading volume also fell by 11.74 per cent to 1.14 billion units.
Despite weaker participation, total transaction value surged by 69.27 per cent to N53.35bn.
Aradel Holdings Plc topped the value chart with trades worth N6.4bn. Nearly eight million units were executed as off-market transactions across eight tranches, accounting for 12 per cent of total value traded.
Meanwhile, JapaulGold & Ventures Plc led the volume chart with 102.4 million units exchanged.
On the gainers’ chart, Jaiz Bank Plc rose by 10 per cent. Infinity Trust Mortgage Bank Plc gained 9.93 per cent, while FCMB Group Plc advanced 9.72 per cent.
FTG Insure Plc appreciated by 9.09 per cent and Sterling Financial Holdings Company Plc added 7.50 per cent.
On the losers’ table, Daar Communications Plc and Tantalizers Plc recorded the maximum daily price movement in the red zone. BUA Foods, Ellah Lakes Plc and JapaulGold posted declines of 9.99 per cent, 9.96 per cent and 9.95 per cent, respectively.
Market analysts said the session reflects persistent profit-taking pressure and cautious investor positioning, despite strong year-to-date gains.
