N4.64tn wiped off NGX market cap in single-day meltdown

cover, Financial Markets

Bearish trading on the Nigerian Exchange Limited on Tuesday took another dimension as the All-Share Index crashed by 5.01 per cent, in what some analysts described as the worst decline since 2010, to close at 141,327.30 points.

Investors also recorded a daily loss of N4.64tn following sell-offs in bellwether stocks such as Dangote Cement (-10.00 per cent), MTN Nigeria (-10.00 per cent), BUA Cement (-10.00 per cent), Aradel (-9.67 per cent), and Guaranty Trust Holding Company (-7.69 per cent).

The market capitalisation stood at N89.88tn, falling below the N90tn mark.

At the close of trading, only four stocks escaped the bloodbath to emerge as gainers. They were NCR (Nigeria) Plc, which gained 9.82 per cent to close at N21.25; Berger Paints, which rose by 2.56 per cent to end the day’s trading at N36.00; and FCMB Group stocks, which appreciated by 0.96 per cent to N10.50. Managing to squeeze into the gainers’ chart was AXA Mansard Insurance, up by 0.25 per cent to close at N12.10 per share.

Leading the losers’ chart were Academy, Custodian, Dangote Cement, DeapCap, Oando, Transcorp, Veritas Kapital, MTN Nigeria, and BUA Cement, which all recorded the maximum daily loss of 10 per cent in their share prices. The total number of losers at the close of trading stood at 61 stocks.

Trading metrics showed total volume traded increased by 80.03 per cent to 656.95 million units, while total value traded rose by 158.86 per cent to N29.39bn.

The shares of FBN HoldCo emerged as the most actively traded by volume, accounting for 68.3 million units (10.4 per cent of total volume traded), while Geregu topped the value chart with trades worth N4.4bn (15.0 per cent of total value).

On the sectoral front, losses deepened, with Industrial leading the decline at -8.55 per cent, followed by Banking (-7.27 per cent), Oil & Gas (-4.65 per cent), Insurance (-4.33 per cent), Consumer Goods (-2.20 per cent), and Commodities (-2.07 per cent).

Investment house CardinalStone, in its daily report, stated: “In today’s trading session, the Nigerian equities market recorded its steepest decline since 2010, as the NGX All-Share Index plunged 5.01 per cent to close at 141,327.30 points.”