Nigerian Stocks Slide: N84 Billion Lost as Market Continues Downturn

The Nigerian Exchange (NGX) extended its losing streak on Thursday, shedding N84 billion, largely due to significant losses in the stocks of Skyway Aviation Handling, NEM Insurance, and 26 other companies.

The All-Share Index decreased by 0.15% to settle at 97,978.02 basis points, and the market capitalisation also declined by 0.15% to N55.424 trillion.

Market Performance

– Decliners: 28
– Gainers: 17

This bearish trend follows a similar loss of N89 billion on Wednesday, triggered by traders offloading banking stocks in reaction to the Central Bank of Nigeria’s Monetary Policy Committee’s decision to hike the benchmark interest rate.

Significant Losses

– Skyway Aviation Handling: -9.80%, closing at N20.70
– NEM Insurance: -9.47%, closing at N7.65
– FTNCocoa: -9.35%, closing at N1.26

Significant Gainers

– C&I Leasing: +9.90%, closing at N3.44
– Caverton: +7.69%, closing at N1.40

Trading Volume and Deals

– Number of Deals: Increased by 6.35% to 7,852
– Trading Volume: Increased by 16.5% to 316.453 million traded shares

United Bank for Africa (UBA) led the volume chart with 50,316,438 units traded in 788 deals. Julius Berger was the most traded security by value, amounting to N1.47 billion in 303 deals. Other major drivers of the trading volume and value included Guaranty Trust Bank Holding Company, Zenith Bank, Transcorp, and Julius Berger.

Sectoral Performance

– Banking Sector: Declined by 1.42%
– Consumer Goods Sector: Slight decline of 0.05%
– Oil and Gas Sector: Gained 0.72%
– Industrial Goods Sector: Unchanged

The Nigerian equity market continues to face challenges, marked by a significant decline in market value driven by losses in key stocks and sectors. The ongoing economic adjustments and interest rate hikes have contributed to the bearish sentiment, impacting investor confidence and trading activities.