By Akinmola Bankole
Investors on the Nigerian Exchange Limited (NGX) lost N718.95 billion in market value on Wednesday as renewed selling pressure on banking and industrial stocks reversed recent gains, pushing the benchmark All-Share Index down by 0.44 per cent.
The market capitalisation of listed equities fell to N164.19 trillion from N164.91 trillion recorded on Tuesday, while the All-Share Index declined by 1,107.28 points to close at 252,882.78 points.
The downturn was driven largely by profit-taking in banking stocks, with the NGX Banking Index falling by 2.36 per cent as investors reduced exposure to major financial institutions.
First Holdco Plc led the losers, shedding 10 per cent to close at N139.50 from N155.00. Other decliners included Fidelity Bank, which fell by 3.18 per cent, Guaranty Trust Holding Company, down 1.79 per cent, and Wema Bank, which lost 1.61 per cent. Zenith Bank also declined by 0.41 per cent.
The industrial goods sector also came under pressure, with BUA Cement shedding 1.21 per cent, contributing to a 0.31 per cent decline in the industrial goods sector index. The insurance index fell by 0.13 per cent, while the oil and gas sector recorded a marginal loss.
Despite the broad market decline, some equities attracted buying interest. Sovereign Trust Insurance led the gainers with a 10 per cent increase to N1.98, followed by UPDC Real Estate Investment Trust, which rose by 9.61 per cent to N21.10, and Austin Laz & Company, up 9.21 per cent to N2.61.
United Bank for Africa gained 6.83 per cent to close at N43.00, providing some support against the losses recorded by other banking stocks.
Market breadth remained negative, with 30 stocks closing lower against 26 gainers, indicating that the sell-off extended beyond a few heavyweight equities.
Trading activity also slowed sharply, as investors exchanged 404.08 million shares in 38,970 deals, compared with 5.23 billion shares traded in 35,882 deals on Tuesday. While trading volume dropped by more than 92 per cent, the number of deals increased by 8.61 per cent.
The decline came amid a market that has recorded substantial gains this year, leaving investors balancing opportunities for further appreciation against the need to lock in profits. Higher interest rates and the performance of heavyweight banking stocks remain important factors influencing equity valuations and market sentiment.
The latest session’s losses highlight the influence of large-cap financial stocks on the broader market, as continued selling pressure in major counters could weigh on the index even when selected equities record gains.
