NGX sheds N1tn on sell-offs in BUA Foods, banking stocks

The Nigerian equities market displayed notable volatility during trading on Wednesday, closing on a downward trajectory. The benchmark All-Share Index retreated to 243,967.09 points, down from Tuesday’s reading of 246,723.57.

Overall equity market capitalisation mirrored this decline, shedding over N1.76tn to settle at N157.49tn. Throughout the trading week, the index touched a high of 248,529.75 points on Monday before dipping to its weekly low on Wednesday.

Systemic monetary policy settings provided the macro backdrop for these movements, with the Central Bank of Nigeria maintaining its Monetary Policy Rate at 26.50 per cent. Market indicators across key indices reflected broad-based selling pressure, particularly within large-cap and sector-specific tracks.

The NGX 30 Index contracted to 8,941.01 points, while the NGX Premium Index dropped to 28,733.69. Similarly, the NGX Main-Board Index slid from 11,133.93 points on Tuesday to 10,962.60 points.

Sectoral performance was predominantly dominated by losses, with consumer goods experiencing significant headwinds. The NGX Consumer Goods Index witnessed a sharp drop, falling to 4,106.48 points from 4,319.51 in the previous session.

A major drag in this sector came from BUA Foods Plc, which suffered a maximum daily loss of 10.00 per cent to close at N760.60 per share, alongside Unilever Nigeria Plc, which dropped 9.97 per cent to end at N131.40 per share.

The banking sector also succumbed to moderate downward revaluation, as the NGX Banking Index softened to 2,560.67 points. Key commercial banking institutions recorded declines, including Access Holdings Plc, which fell 3.01 per cent to N27.40, and United Bank for Africa Plc, down 2.15 per cent to N45.45. Zenith Bank Plc recorded a 1.34 per cent drop to close at N124.80, while Fidelity Bank Plc shed 2.27 per cent to finish at N21.50 per share.

Despite the general downturn across major financial stocks, select banking equities bucked the market trend with strong gains. Ecobank Transnational Incorporated emerged as one of the top performers on the exchange, soaring 9.93 per cent to close at N71.40. Non-interest lender Jaiz Bank Plc and tier-two operator Wema Bank Plc also recorded positive momentum, gaining 2.33 per cent to reach N8.80 and 1.58 per cent to reach N28.95, respectively.

Insurance equities demonstrated resilience, pushing the NGX Insurance Index up to 1,152.13 points from Tuesday’s level of 1,144.06. Gains were driven by International Energy Insurance Plc, which locked in a 10.00 per cent surge to N4.40, and Cornerstone Insurance Plc, which rose 6.80 per cent to N5.50. Veritas Kapital Assurance Plc and Sovereign Trust Insurance Plc also added value, gaining 6.25 per cent and 4.21 per cent to close at N1.36 and N1.98, respectively.

Industrial goods and oil and gas counters exhibited mixed-to-stable performance during the daily session. Dangote Cement Plc remained unchanged at N1,034.00, while HBM Nigeria Plc slipped 2.48 per cent to N350.00, drawing the NGX Industrial Index down to 10,457.71 points. In the energy sector, Seplat Energy Plc and Aradel Holdings Plc held steady at N11,363.90 and N1,526.80, respectively, whereas Eterna Plc gained 1.39 per cent to close at N36.50.

In total market trading activity, investors executed 39,031 deals across the equity market, exchanging over 1.45 billion shares. The total value traded in the insurance sub-sector stood out due to heavy volume, primarily led by Fortis Global Insurance Plc, which traded over 853 million shares, and Universal Insurance Plc, which generated a volume of over 251 million shares. The ICT sector contributed substantial turnover through Chams Holding Company Plc, which recorded nearly 40 million traded shares.

Growth and specialised board securities showed active engagement from retail and institutional participants. On the Growth Board, waste management company The Initiates Plc advanced 2.29 per cent to N26.80 on a volume of 3.8 million shares.

Meanwhile, exchange-traded funds logged 862 trades across 391,023 units, where the Stanbic IBTC ETF 30 recorded a notable 6.95 per cent gain to close at N2,299.98 per unit.

Fixed-income securities on the Nigerian Exchange remained quiet on the secondary market front, with fixed-rate sovereign and corporate bonds recording zero trades across almost all series. The NGX Sovereign Bond Index remained unchanged at 668.35 points. The only debt transaction recorded during the trading session occurred on the Non-Interest Finance Board, where a single deal in TAJ Sukuk Series 2 involved 100,000 units valued at an adjusted price of N97.00 per unit.