NGX market losses reached ₦3.28 trillion on Thursday, November 5, after sustained selling pressure pushed the Nigerian equities market into a significant decline, with major companies, including Dangote Cement and Presco, recording substantial reductions in their share prices.
The downturn affected the overall performance of the Nigerian Exchange Limited (NGX), as the market capitalisation dropped from ₦165.42 trillion recorded in the previous trading session to ₦162.13 trillion at Thursday’s close.
This represented a decline of approximately 1.98 per cent, highlighting the extent of the losses experienced by investors during the session. The All-Share Index also fell by 5,052.22 points, moving from 254,762.81 points on Wednesday to 249,710.59 points.
The latest performance reversed the positive movement recorded during the previous session and reflected increased selling activity across several major stocks, particularly companies with significant influence on the exchange’s overall market valuation.
Dangote Cement, Presco Lead Major Stock Declines
The NGX market losses were largely influenced by sharp declines in the share prices of some of the exchange’s biggest companies, with Dangote Cement and Presco recording losses of 10 per cent each during Thursday’s trading.
Dangote Cement shares declined from ₦1,490 to ₦1,341, representing a reduction of ₦149 per share, while Presco fell from ₦1,840.80 to ₦1,656.80 as investors continued to sell their holdings.
The performance of these companies contributed to the broader market decline because of their significant positions within the Nigerian equities market.
Other listed companies also experienced considerable pressure, with Wapic Insurance recording a 9.91 per cent decline to close at ₦2.00 per share. Austin Laz and Lasaco Assurance followed with losses of 8.57 per cent each, while United Africa Company of Nigeria (UACN) dropped by 7.85 per cent to finish trading at ₦166.80.
However, the session was not entirely negative, as several companies managed to record gains despite the broader decline affecting the exchange.
CWG Plc emerged as the day’s strongest performer after its share price appreciated by 9.94 per cent to close at ₦17.15. Abbey Mortgage Bank followed with a 9.84 per cent increase to ₦6.70, while Honeywell Flour Mills gained 9.82 per cent to settle at ₦26.85.
eTranzact International and Caverton Offshore Support Group also recorded positive performances, appreciating by 9.71 per cent and 8.96 per cent, respectively.
Nevertheless, the overall market breadth remained negative, as 36 equities closed lower against 20 stocks that recorded gains, indicating that declining shares significantly outnumbered advancing companies.
NGX Market Losses Continue Despite Increased Trading Activity
Despite the significant reduction in market value, trading activity increased during the session, with investors exchanging approximately 856.28 million shares valued at ₦74.09 billion across 33,540 transactions.
The trading figures reflected considerable activity on the exchange, even as investors navigated changing share prices and the widespread decline affecting several listed companies.
A sectoral breakdown also showed that industrial goods stocks experienced the largest decline, with the sectoral index falling by 7.14 per cent during the session.
The insurance sector followed with a 2.51 per cent reduction, while the banking index declined by 0.66 per cent. Consumer goods stocks recorded a smaller loss of 0.14 per cent, while the oil and gas sector shed 0.04 per cent.
These performances showed that the downturn extended beyond individual companies, although some sectors experienced considerably heavier losses than others.
Despite Thursday’s decline, the Nigerian equities market maintained a positive year-to-date performance, with the All-Share Index retaining an estimated return of 60.47 per cent.
The latest NGX market losses therefore represent a setback within a market that has recorded substantial gains over the course of the year, rather than a reversal of its entire year-to-date performance.
Investors will be watching subsequent trading sessions for signs of recovery, particularly among highly capitalised companies whose share price movements can significantly influence the overall direction of the market.
Further changes in investor activity, sector performance and the valuation of major listed companies will remain important factors in determining how the Nigerian Exchange performs in the coming sessions.
