The stock market segment of the Nigerian Exchange Limited (NGX) began this week's trading on a downward trend, primarily due to profit-taking activities by investors in Guaranty Trust Holding Company Plc, which saw a decline of 3.4 percent, along with 29 other stocks, resulting in a 0.21 percent drop in the market indicator.
The Nigerian Exchange Limited All-Share Index (NGX ASI) fell by 202.75 basis points, or 0.21 percent, closing at 97,626.27 basis points, while the Year-to-Date returns for the stock market stood at +30.60 percent.
In terms of market capitalization, there was a loss of N123 billion, bringing the total to N59.169 trillion. Sector performance showed declines in the NGX Banking Index (-1.6 percent), NGX Oil & Gas Index (-0.2 percent), and NGX Insurance Index (-0.2 percent), with the NGX Consumer Goods Index remaining stable. The NGX Insurance Index was the only sector to record a gain, increasing by 0.7 percent.
Market breadth was slightly negative, with 29 stocks advancing compared to 30 that declined. Haldane McCall achieved the highest price increase of 10 percent, closing at N5.61 per share. SUNU Assurance followed closely with a 9.81 percent rise to N3.47, while NCR Nigeria increased by 9.72 percent to close at N4.74 per share.
Sovereign Trust Insurance saw a 9.52 percent appreciation, closing at 69 kobo, and Tantalizers rose by 9.32 percent to N1.29 per share. Conversely, Secure Electronic Technology topped the losers' list with a 9.84 percent decline, closing at 55 kobo per share. DAAR Communications experienced a 9.68 percent drop to 56 kobo, while Austin Laz & Company fell by 9.40 percent to N2.41 per share. Guinea Insurance and Lasaco Assurance also recorded losses of 9.09 percent and 8.63 percent, closing at 50 kobo and N2.33 per share, respectively.
Additionally, the total trading volume surged by 83.09 percent, reaching 671.260 million units valued at N10.640 billion, across 10,464 transactions.
FBN Holdings (FBNH) led the trading activity with 245.252 million shares, amounting to N6.227 billion. Following closely was Haldane McCall, which recorded 47.143 million shares valued at N264.469 million. Tantalizers also saw significant trading, with 35.345 million shares worth N45.595 million exchanged.
Guinea Insurance had 32.863 million shares traded, valued at N17.845 million, while Prestige Assurance completed transactions of 32.753 million shares, totaling N25.816 million.
Looking ahead, United Capital Plc anticipates that the equities market will continue to attract interest as investors seek out undervalued stocks. However, the prevailing high interest rates in the fixed income and money markets may lead to a bearish sentiment in the equities market, as investors with a fixed income focus capitalize on the attractive yields available.
Nonetheless, bullish investors are likely to remain motivated to engage in bargain hunting, recognizing the significant mid- to long-term opportunities present in the equities market.