Nigerian equities suffered a sharp reversal on Tuesday as broad-based selling wiped N1.88 trillion from investors’ wealth and pushed the NGX All-Share Index (ASI) down 1.17%.
The benchmark index closed at 244,802.11 points, compared with 247,699.78 points in the previous session, while its year-to-date return eased to 57.31%.
The sell-off was widespread, with 63 stocks declining against just four gainers, signalling a significant deterioration in market breadth after the recent recovery.
Heavy losses were recorded across several large-cap stocks. FIRSTHOLDCO led the decliners, falling 9.30%, followed by CAP (-7.73%), MAYBAKER (-7.09%), ACCESSCORP (-7.06%), UACN (-5.51%), NEM (-5.50%) and UBA (-5.00%).
Other major decliners included TIP (-4.54%), ETERNA (-4.17%), ZENITHBANK (-3.94%), OANDO (-3.32%) and DANGSUGAR (-2.79%).
MTNN, which gained 2.39%, and GTCO, up 1.52%, were among the few major stocks to buck the sell-off.
The session also saw AVACAP trade below its 52-week low, falling from N6.00 to N5.40.
The market capitalisation-weighted index fell 1.44% to 1,402.90 points, while the float-adjusted total return index dropped 4.04% to 1,142.65 points.
Trading activity rises sharply
Despite the decline in prices, trading activity strengthened considerably following 84.67% rise is total trade volume to 753.17 million shares, while value traded increased 2.13% to N27.83 billion across 54,051 deals.
NEM led trading activity with 131.73 million shares valued at N4.07 billion, accounting for 17.49% of total volume and 14.63% of traded value.
MBENEFIT and STERLINGNG contributed 11.70% and 5.43% of total volume respectively, while MTNN and HBMNG followed NEM among the leading stocks by value traded.
The sharp rise in volume alongside the relatively modest increase in traded value points to increased activity in lower-priced stocks as investors repositioned amid the sell-off.
Meanwhile, in the currency market, the average Bureau de Change rate of naira appreciated 0.22% to N1,387/$1, while the currency remained relatively stable at the Nigerian Foreign Exchange Market window at N1,320.25/$1.
The broad decline on the equities market leaves investors watching whether Tuesday’s sell-off represents profit-taking after the market’s strong run or the beginning of a deeper correction.