The Nigerian stock market continued its downward trajectory on Tuesday as investors lost a staggering N322bn, extending what has become a consistent NGX extends bearish run over the past weeks.
The market, which had opened the week on a negative note, has now recorded consecutive losses driven by weak investor sentiment and profit-taking across key sectors.
NGX Extends Bearish Run Wipes Off Gains
At the close of trading, the All-Share Index dropped by 568.62 points to settle at 140,929.60, representing a 0.4 per cent decline.
This extended the one-week loss to 0.44 per cent and the four-week loss to 0.36 per cent, even though year-to-date performance remained strong at 36.92 per cent.
Despite the overall downturn, trading activity surged. A total of 759.05 million shares worth N25.72bn were traded in 23,639 deals.
This represented a 55 per cent increase in volume and an 88 per cent rise in turnover compared to the previous session, though the number of deals declined by 17 per cent, reflecting selective investor participation during the NGX bearish run.
Out of 128 equities traded, 16 stocks posted gains, while 35 recorded losses, underscoring the dominance of negative sentiment across the market.
Gainers and Losers in the Midst of NGX Bearish Run
Thomas Wyatt Nigeria led the gainers’ chart with a 9.8 per cent jump to close at N2.80 per share. Chellarams followed closely with a 9.59 per cent gain to N16.00, while RT Briscoe climbed 9.5 per cent to N3.92.
Custodian and Allied also advanced by 9.4 per cent to N48.30, proving that a handful of stocks still managed to defy the NGX bearish run.
On the losing side, Dangote Sugar Refinery posted the steepest decline of 10 per cent, closing at N54.00. Wema Bank slipped 8.27 per cent to N18.85, while Secure Electronic Technology dropped 6.25 per cent to N0.75.
Access Holdings shed 4.98 per cent to N24.80, and Aradel also dipped 4.76 per cent to N560.00, further weighing down market sentiment.
Consolidated Hallmark Holdings emerged as the most actively traded stock, recording 170 million shares.
Zenith Bank followed with 104 million shares, while First HoldCo and Fidelity Bank accounted for 101 million and 52.5 million shares respectively.
In terms of value, Zenith Bank led with trades worth N6.91bn, followed by Guaranty Trust Holding Company Plc with N4.12bn, First HoldCo with N3.15bn, MTN Nigeria at N1.61bn, and Presco at N1.24bn.
These large-cap stocks helped sustain liquidity even as the NGX bearish run intensified.
The broad market weakness was also mirrored in sectoral performance. The NGX Top 30 Index fell by 0.47 per cent to close at 6,012.48, while the Main Board Index slipped 0.47 per cent.
The Industrial Index shed 0.6 per cent, and the Consumer Goods Index dropped marginally by 0.11 per cent.
Other indices also faced declines: the Premium Index fell by 0.28 per cent, while the Pension Index dropped by 0.72 per cent, signaling cautious positioning by institutional investors in the face of the ongoing NGX bearish run.
The bearish sentiment was further reflected in trading patterns at the beginning of the week when the market lost N220bn on Monday due to sharp declines in Nigerian Breweries and other major consumer and industrial goods stocks.
Analysts suggest that profit-taking, inflationary pressures, and cautious outlooks on earnings season are fuelling the NGX bearish run.
Market observers note that while turnover has increased due to heavy activity in banking and insurance stocks, the decline in deals suggests traders are being selective in their market approach, opting for defensive positions rather than broad-based investments.
Despite the current dip, analysts remain cautiously optimistic.
Some believe the NGX bearish run could provide bargain-hunting opportunities for long-term investors, especially given that the market has maintained a year-to-date gain of nearly 37 per cent.
However, others warn that persistent macroeconomic challenges, such as inflationary pressures and weak consumer demand, could continue to drag performance in the near term.
The Nigerian Exchange remains a critical barometer of investor confidence, and while the NGX bearish run is raising concerns, stakeholders are hopeful that policy reforms, improved corporate earnings, and stronger sectoral performance could help reverse the trend in the coming weeks.
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