Investors lose N1.17trn as equities open week in red

By Chukwuma Umeorah

Investors at the Nigerian Exchange Limited began the week on a negative note as the equities market shed N1.17 trillion on Monday following renewed profit-taking across major counters. The NGX All-Share Index declined by 1.26 per cent to close at 145,159.77 points, while market capitalisation fell to N92.33 trillion.

Monday’s downturn signalled a renewed bearish momentum after what appeared to be a brief recovery in the previous week. The negative performance was largely driven by selloffs in the Industrial Goods sector, where Dangote Cement Plc recorded a ten per cent decline, placing it at the top of the losers’ chart for the day. Enamelware Nigeria Plc also fell sharply by 10.00 per cent, deepening the sector’s drag on the broader market. Transnational Corporation Plc lost 4.66 per cent, while AIICO Insurance Plc dipped by 4.11 per cent. Guinea Insurance Plc declined by 3.97 per cent.

Despite the overall loss, market breadth closed neutral, as twenty-eight equities appreciated compared to twenty-four that declined. Sovereign Trust Insurance Plc led the gainers with a 9.97 per cent increase, followed closely by NCR Nigeria Plc, which rose 9.96 per cent. Tantalizers Plc appreciated by 9.81 per cent, while Prestige Assurance Plc gained 9.70 per cent. Eunisell Interlinked Plc advanced by 8.52 per cent, providing some upward movement in an otherwise weak session.

Analysts expect investor sentiment to remain cautious as profit-taking persists across high-capitalisation stocks. They noted that while recent rallies created opportunities for selective entry, sustained pressure in the Industrial Goods and Banking sectors may continue to weigh on market direction in the short term.

Across the sectoral indices, performance was broadly weak. The NGX Industrial Goods Index posted the largest loss, falling by 4.48 per cent. It was followed by the NGX Oil and Gas Index, which depreciated by 1.18 per cent, and the NGX Banking Index, which dipped by 1.01 per cent. The NGX Consumer Goods Index and the NGX Commodity Index fell marginally, while the NGX Insurance Index recorded the only gain for the day, rising by 0.07 per cent.

Trading activity reflected mixed sentiment as total volume traded declined sharply by 92.64 per cent to 360.61 million units, compared with almost five billion units recorded in the previous session. Transaction value also fell by 26.88 per cent to N30.89 billion.

However, the total number of deals rose by 15.83 per cent to 27,975, suggesting heightened retail participation through smaller-sized orders even as institutional activity tapered. Tantalizers Plc, Aradel Holdings Plc, Guaranty Trust Holding Company Plc, ASO Savings and Loans Plc, and Sterling Financial Holdings Company Plc dominated the activity chart by volume. Aradel Holdings Plc, Guaranty Trust Holding Company Plc, Presco Plc, Zenith Bank