The market capitalization of the Nigerian Exchange Limited dropped to N56.13 trillion on Tuesday as equity trading on the local bourse ended on a bearish note.
The NGX All-Share Index declined by 0.09 percent to close at 99,217.60 points, reducing its year-to-date return to 32.69 percent as investor sentiment weakened.
The market capitalization of listed equities decreased by 0.44 percent to N56.13 trillion, despite the Exchange recording more gainers (27) than losers (23).
This bearish trend was further evidenced by significant declines in trading activity levels.
The total number of deals, trading volume, and value for the day dropped by 14.38 percent, 62.86 percent, and 68.09 percent, respectively, totaling 8,511 deals, 361.57 million units, and N6.16 billion.
Furthermore, performance across the sub-sectors under our purview mirrored the overall bearish market sentiment, with the Banking, Consumer Goods, and Industrial Goods indices posting losses of 0.41 percent, 0.47 percent, and 0.17 percent, respectively.
The Insurance index was the sole gainer, rising by 0.81 percent, while the Oil/Gas index remained flat from the previous session.
The main contributors to the day’s losses included stocks such as OANDO (-9.75%), UPL (-9.09%), ACADEMY (-8.00%), HONEY FLOUR (-7.94%), and UPDC (-7.86%), all experiencing significant share price declines and thus emerging as the top five decliners for the day. TRANSCORP was the most traded security in terms of volume, with 47.51 million units valued at N581.92 million exchanged in 306 trades, while GTCO led in traded value, amounting to N1.65 billion.
In the money market, NIBOR rates declined, reflecting an injection of liquidity into the system due to disbursements from FAAC.
Key money market rates such as the Open Repo Rate (OPR) and Overnight Lending Rate (OVN) concluded at 23.45 percent and 24.04 percent, respectively. Meanwhile, NITTY was in the mixed bag reflecting the expectation for the Nigerian T-bills auction tomorrow where higher rates and yields are expected at the primary market auction. The average secondary market yield on T-bills declined by 0.01 percent to settle at 19.76 percent.
In the FGN bond market, the average secondary market yield increased marginally by a base point to close at 18.78 percent. The sovereign Eurobonds market was bearish across maturities, thus pushing the average yield higher by 0.01 percent to 10.32 percent.
In the foreign exchange market, the Naira depreciated against the dollar by 0.71 percent in the official NAFEM market, closing at ₦1,500.79 per dollar. At the parallel market, the Naira closed at N1, 480 per dollar.
