By David Akinmola
The Nigerian equities market shed N407.3 billion in investors’ wealth on Monday as renewed selling pressure on banking stocks dragged the benchmark index lower, reversing gains recorded in the previous trading session.
The market capitalisation of listed equities on the Nigerian Exchange Limited (NGX) fell from N161.26 trillion on Friday to N160.85 trillion, representing a 0.25 per cent decline as investors reduced their exposure to major banking stocks and selected oil and gas counters.
The All-Share Index (ASI) also dropped by 627.31 points to close at 247,736.24 points, compared with 248,363.55 points recorded at the previous session.
The decline was driven largely by losses among heavyweight lenders, with Access Holdings and Zenith Bank leading the banking sector’s retreat. Access Holdings fell by 4.24 per cent, while Zenith Bank declined by 4.23 per cent. Fidelity Bank lost 2.62 per cent, First Holdco shed 2.54 per cent, and Sterling Financial Holdings dropped 1.30 per cent.
The sell-off pushed the NGX Banking Index down from 2,614.79 points to 2,567.52 points, making the sector a major drag on the broader market.
Other banking stocks that recorded losses included Jaiz Bank, Wema Bank and United Bank for Africa, which declined by 1.27 per cent, 1.12 per cent and 0.81 per cent, respectively.
The downturn extended to the oil and gas sector, where the NGX Oil and Gas Index slipped from 6,005.98 points to 5,993.51 points. Oando Plc fell by 7.55 per cent, while Japaul Gold and Ventures lost 0.39 per cent.
Despite the broad-based pressure, selective buying interest in consumer goods, pharmaceuticals and real estate stocks helped cushion the market’s losses.
Neimeth International Pharmaceuticals led the gainers, appreciating by 10 per cent to close at N7.70 per share. UPDC Real Estate Investment Trust also gained 10 per cent to N26.40, while Guinness Nigeria advanced by 9.93 per cent to N423.
Livestock Feeds rose by 9.89 per cent to N14.45, while NPF Microfinance Bank gained 9.52 per cent to close at N4.60.
The insurance sector also recorded a marginal improvement, with the NGX Insurance Index rising from 1,081.10 points to 1,082.56 points, supported by gains in Mutual Benefits Assurance and Regency Alliance Insurance. Both stocks appreciated by 6.49 per cent, despite Sunu Assurances Nigeria emerging among the market’s biggest losers after shedding 9.85 per cent.
Other major decliners included Critical Minerals Financing Corporation, which fell by 9.78 per cent, LivingTrust Mortgage Bank, down 6.25 per cent, and Zichis Agro-Allied Industries, which lost 6.16 per cent.
Market activity increased during the session, with approximately 405.36 million shares traded in 52,891 deals, compared with 322.01 million shares exchanged in 37,758 deals on the previous trading day.
The market’s decline came amid continued investor repositioning across large-cap stocks, with the performance of banking equities weighing heavily on the benchmark index. However, the losses were not uniform across the market, as gains in selected counters showed that investors continued to seek opportunities in stocks with positive price momentum.
Monday’s close left the All-Share Index at its lowest level within the five-session trading window from October 6 to October 12, even as the market maintained a positive year-to-date return.
The immediate direction of the market is likely to depend on whether selling pressure on major banking stocks persists or investors return to fundamentally attractive counters as companies release their financial results and provide further indications of earnings performance.
