ASI slips 0.03% despite 33 gainers as trading volume falls sharply by 34.47%…..
The Nigerian equities market gave up earlier gains on Wednesday as sell-offs in several large- and mid-cap stocks pulled the benchmark index slightly lower at the close of trading.
The Nigerian Exchange Limited All-Share Index declined by 63.46 points, representing a 0.03 per cent drop, to settle at 246,019.17 points from the previous session’s 246,082.63 points.
The decline translated into a loss of about N41 billion in market capitalisation, which fell to N158.915 trillion.
Despite the weaker headline performance, market breadth remained positive, with 33 stocks recording price gains compared with 29 decliners.
Trading activity, however, slowed considerably during the session, with total volume dropping by 34.47 per cent to 426.840 million shares.
The shares changed hands in 41,475 deals with a combined value of N28.438 billion.
Oando, Tripple Gee Lead Gainers
Tripple Gee & Company emerged as the best-performing stock of the session, climbing 10 per cent from N2.60 to N2.86 per share.
Sovereign Trust Insurance followed closely, gaining 9.71 per cent to close at N2.26 from N2.06.
Oando also recorded a strong performance, rising 9.43 per cent to N38.30 from N35.00.
McNichols appreciated by 9.09 per cent to N5.40, while NEM Insurance rounded off the top five gainers after advancing 7.99 per cent to N34.45 from N31.90.
NASCON, Beta Glass Suffer Heavy Losses
On the losing side, NASCON Allied Industries recorded the biggest decline, shedding 10 per cent to close at N175.50 compared with N195.00 previously.
Beta Glass followed with a 9.99 per cent decline, falling from N562.90 to N506.60.
Academy Press lost 9.76 per cent to close at N5.55 from N6.15, while CWG declined 9.35 per cent to N19.40.
Learn Africa completed the top five losers, dropping 9.20 per cent from N8.70 to N7.90.
The broader decline was driven largely by weakness in major stocks, with Beta Glass, NASCON Allied Industries, Stanbic IBTC Holdings, CWG and Access Holdings among the counters weighing on the market.
Large Caps Remain Key Market Drag
Wednesday’s performance showed the growing influence of large and medium-capitalised stocks on the overall direction of the NGX.
Although more stocks advanced than declined, losses recorded in some of the market’s heavyweight counters were enough to push the All-Share Index into negative territory.
NASCON’s 10 per cent decline and Beta Glass’ near-10 per cent drop provided significant downward pressure, while declines in Stanbic IBTC Holdings and Access Holdings further weakened the index.
The positive breadth, however, indicates that buying interest was not absent from the market, with gains spread across several counters.
Trading Activity Drops
The slowdown in trading activity was another notable feature of Wednesday’s session.
A total of 426.840 million shares were traded, representing a 34.47 per cent decline from the previous session.
The transactions were valued at N28.438 billion and executed through 41,475 deals.
Access Holdings was the most actively traded stock by volume, with 33.220 million shares worth N1.032 billion changing hands.
Stanbic IBTC Holdings ranked second, recording 28.743 million shares valued at N4.114 billion.
Sterling Financial Holdings Company followed with 19.606 million shares worth N150.242 million.
Chams Holding Company recorded 18.560 million shares valued at N71.584 million, while Guaranty Trust Holding Company completed the top five most traded stocks with 15.078 million shares worth N2.008 billion.
Investor Sentiment Remains Resilient
Despite the marginal decline in the benchmark index, Wednesday’s positive market breadth suggests that underlying investor sentiment remained relatively firm.
The performance also comes against the backdrop of renewed international market attention following FTSE Russell’s confirmation that Nigeria will return to Frontier Market status later this month.
Cowry Assets Management Limited expects investor sentiment to remain positive, citing improved confidence following the confirmation of Nigeria’s reclassification.
The combination of broad-based buying and strong gains in several individual stocks suggests that investors remain willing to take positions despite the weakness recorded among some of the market’s larger counters.
However, the direction of the NGX in the near term could depend heavily on whether buying interest returns to the large-cap segment.
A sustained recovery in heavyweight stocks could provide the support needed for the All-Share Index to resume its upward movement, while continued profit-taking in major counters could keep the market under pressure.
For now, Wednesday’s session represents only a marginal setback, with the index losing 0.03 per cent despite more advancing stocks than decliners.
