- The Nigerian stock market recorded a second consecutive day of losses, shedding N1.005 trillion in market capitalisation
- Banking, insurance, and consumer goods stocks drove the decline, with the Insurance Index falling the steepest at 2.26%
- Analysts at Cowry Asset Management warned the market could remain under pressure as profit-taking continues across most sectors
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.
Nigeria’s stock market suffered another bruising session on Thursday, July 31, as investors lost N1.005 trillion in market value, pushing the bourse into a second straight day of decline driven by widespread selling in banking and insurance stocks.
Data from the Nigerian Exchange (NGX) showed the All-Share Index (ASI) fell 0.66% to close at 245,362.26 points, down from 246,980.17 points at the end of the previous session.
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Market capitalisation dropped from N159.34 trillion to N158.34 trillion.
Broad Selling Drags Multiple Sectors
Investor sentiment remained firmly negative throughout the session. Losers outnumbered gainers by 45 to 17, giving a market breadth ratio of just 0.4, a sign of selling pressure spread across the board.
The Insurance Index bore the worst of it, falling 2.26% to close at 1,191.15 points.
The Banking Index shed 2.04% to 2,480.57 points, while the Consumer Goods Index dropped 1.10% and the Industrial Index lost 0.70%. Only the Oil and Gas Index managed to close positive, edging up 0.01%, while the Commodity Index ended flat.
HBM Nigeria, NGX Group, NASCON Allied Industries, First HoldCo, and Zenith Bank were among the large- and mid-cap stocks that weighed heaviest on the index.
Thursday’s decline followed Wednesday’s N648 billion loss, bringing the market’s cumulative two-day decline to more than N1.65 trillion.
Top losers
- Tripple Gee & Company declined by 10.00% to close at N2.88.
- Lasaco Assurance fell 9.92% to N2.18.
- C&I Leasing lost 9.84% to settle at N5.50.
- Mutual Benefits Assurance dropped 9.80% to N3.22.
- Trans-Nationwide Express declined 9.03% to close at N2.82.
Top gainers
- Legend Internet gained 8.64% to close at N4.40.
- Daar Communications advanced 7.32% to N1.76.
- Sterling Financial Holdings rose 6.67% to N8.00.
- Sovereign Trust Insurance appreciated 5.73% to N2.03.
- Royal Exchange added 4.69% to close at N1.34.
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Source: Getty Images
Most active stocks
Trading activity strengthened despite the market’s bearish close. A total of 2.10 billion shares valued at N230.83 billion were traded in 48,231 deals.
- First HoldCo led the activity chart with 1.57 billion shares worth N196.20 billion.
- Access Holdings traded 37.40 million shares valued at N998.51 million.
- Sterling Financial Holdings exchanged 36.01 million shares worth N286.80 million.
- Ellah Lakes recorded 34.75 million shares valued at N297.83 million.
- Zenith Bank traded 33.10 million shares worth N4.03 billion.
Femi Otedola’s net worth rises again
Earlier, Legit.ng reported that First HoldCo Plc Chairman Femi Otedola increased his investment in the financial services group after acquiring an additional 680.8 million shares through a private placement.
The latest purchase raised his equity interest to 20.42%, with the value of his holdings estimated at about N1.05 trillion.
Sources familiar with the transaction said the shares were allotted at N44 each, below the company’s closing market price of N61 on July 18.
Source: Legit.ng