NGX extends bearish run as investors lose N106bn

The Nigerian equities market extended its bearish run on Monday as renewed selling pressure in banking and insurance stocks dragged the benchmark index lower and wiped N106.24 billion off investors’ wealth.

The NGX All-Share Index declined by 0.07 per cent to close at 242,454.65 points, pushing its year-to-date return down to 55.81 per cent. Consequently, the market capitalisation fell from its previous level to N156.52 trillion.

Market breadth remained negative, with 36 stocks recording losses against 18 gainers, translating to a breadth ratio of 0.5x and signalling weak investor sentiment.

RT Briscoe led the decliners, followed by F&G Insurance, McNichols, Okomu Oil and NEM Insurance, while Trans-Nationwide Express, AVA Capital, Thomas Wyatt Nigeria, Legend Internet and Dangote Sugar Refinery emerged among the notable gainers.

The decline was largely driven by sell-offs in the banking and insurance sectors. The Banking Index fell by 1.48 per cent, while the Insurance Index declined by 0.46 per cent.

In contrast, the Consumer Goods Index gained 0.43 per cent, providing some support to the broader market. The Oil and Gas Index slipped marginally by 0.01 per cent, while the Industrial and Commodity sectors closed relatively flat.

Trading activity was mixed during the session. Total traded volume declined by 5.89 per cent to 1.33 billion shares, while market turnover fell sharply by 49.40 per cent to N22.93 billion.

However, the number of deals executed increased by 16.25 per cent to 45,494 transactions, indicating that while the value and volume of trades weakened, market participation remained relatively active.

Analysts said the market could remain under pressure in the near term as investors adopt a more cautious stance amid weakening sentiment.

However, residual optimism in the market could provide room for a…