- Profit-taking and a shift toward fixed-income assets pushed the Nigerian stock market lower on Monday
- The banking and insurance sectors led the decline as International Energy Insurance and Fidelity Bank posted heavy losses
- Trading volume rose sharply even as the total value of transactions fell by more than a third compared to Friday’s session
Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends. The
Nigeria’s stock market closed in the red on Monday, August 24 ahead of the public holdiay as investors cashed out of equities and moved funds into fixed-income instruments, dragging the All-Share Index (ASI) down by 265.99 points to settle at 239,085.17 points from 239,351.16 points.
The decline wiped N137 billion off the market, with total capitalisation falling to N154.397 trillion from N154.534 trillion recorded at the close of the previous trading session on Friday.
Photo: Bloomberg
Source: Getty Images
Sector Losses Across the Board
Selling pressure spread across most major sectors of the Nigerian Exchange (NGX) Limited.
The banking index suffered the steepest drop, falling by 0.63%, followed by the insurance index, which shed 0.53%.
The consumer goods index edged down by 0.01%, while the industrial goods and energy indices both closed flat.
International Energy Insurance recorded the sharpest single-session loss among individual stocks, tumbling 9.82% to N3.49. Neimeth fell close behind, dropping 9.38% to N7.25.
Fidelity Bank shed 6.00% to trade at N18.80, Guinea Insurance declined by 5.19% to N0.73, and NPF Microfinance Bank lost 4.82% to close at N3.95.
Gainers Offer Some Relief
Not all stocks moved lower. Red Star Express emerged as the session’s top performer, climbing 9.86% to N16.15. University Press advanced 9.38% to N5.25, UPDC added 5.97% to reach N3.55, Haldane McCall rose 3.90% to N4.00, and Sunu Assurances gained 3.33% to close at N3.10.
Trading Activity
Investors traded 668.7 million shares worth N23.8 billion across 45,894 deals on Monday.
That compares with 416.7 million shares valued at N35.6 billion in 36,324 deals on Friday. While trading volume surged by 60.48% and deal count grew by 26.35%, the total value of transactions dropped by 33.15%, pointing to heavier activity in lower-priced stocks.
Photo: NGX
Source: Getty Images
Fortis Global Insurance led all stocks by volume, with 206.7 million units changing hands for N415.7 million.
UBA followed with 89.6 million units worth N4.0 billion, while First Holdco exchanged 61.7 million units valued at N7.9 million.
Access Holdings transacted 33.9 million units for N925.4 million, and Sterling Holdings moved 26.9 million units valued at N204.2 million.
Femi Otedola’s net worth rises again
Earlier, Legit.ng reported that Femi Otedola, Chairman of First HoldCo Plc, has deepened his hold over Nigeria’s most valuable banking stock after buying an additional 680.8 million shares through a private placement, pushing his ownership to 20.42% and lifting the market value of his stake to roughly N1.05 trillion.
The acquisition was completed at N44 per share, a price below the company’s July 18 closing figure of N61, according to market sources familiar with the deal.
Total spending on the new shares came to about N30 billion, with Otedola and one other institutional investor together taking up approximately 90% of the N45 billion placement.
Source: Legit.ng