NGX Posts 1.7% Decline as Investors Lose N1.1 Trillion

After reaping impressive returns on their investments last week, stock investors in Nigeria are parting with fortune since they returned to the trading floor this week.

Marking the second daily negative close in the week, the Nigerian Exchange Limited (NGX) lost N1.1 trillion on Tuesday causing the benchmark index to diminish by 1.66%.

The All-Share Index that tracks equities price movement at the market shed 1,745.16 points to close the session at 103,622.09 basis points.

Driven by the same negative force, aggregate value of listed securities in the market slipped below the N64 trillion mark it earlier attained last week to close the Tuesday session at N63.188 trillion.

Investment experts have ascribed the development to overwhelming pressure from the supply side as many investors moved to make brisk cash off the previous gains seen by the bourse.

Major drivers of the days bearish performance are Dangote Cement and MTN Nigeria, both being large cap stocks in the trillion category.

Dangote Cement commenced trading with an opening price of N478.8 but close the session at N431 per share after shedding N47.8, equivalent to -9.98%. This amounted to a net loss of N814.54 billion in its market cap.

MTN Nigeria followed suits, losing N47.8 or 9.98% in its share price from N242 it opened the session to close at N233 per share. This accumulated to a net loss of N188.96 billion in its market value.

As the market breadth closed negative wit 40 losing stocks lead by Dangote Cement, MTN Nigeria and Honeywell Flour, only 23 gaining stocks emerged at the end of the trading session.

NGX trading data showed that activity level increased on Tuesday with volume and value traded rising by 1.1% and 56.95% at 511.16 million shares valued at N12.76 billion traded in 13,052 transactions.

The shares of GTCO were the most traded stock by volume and value at 54.35 million units and N3.15 billion, respectively.

Analysing by sectors, the Industrial Goods (-5.0%), Insurance (-2.8%), Consumer Goods (-0.3%), and Banking (-0.1%) indices declined, while the Oil & Gas (+0.3%) index was the sole gainer of the day.

Top gainers by percentage

Top decliners by percentage