Sell Pressure Drags NGX Market Capitalisation Down by ₦445 Billion Amid CPI Surge
The Nigerian Exchange (NGX) experienced a significant downturn on Wednesday, as sustained sell pressure led to a sharp decline in market capitalisation, which shed approximately ₦445 billion.
This drop followed the latest data indicating a rebound in inflation, with Nigeria’s rebased consumer price index (CPI) climbing to 24.2% after two consecutive months of easing.
The development further dampened investor sentiment in a market already struggling with consistent sell-offs and declining returns. As a result, the key indices closed lower, wiping off previous gains and contributing to a weaker performance year-to-date.
At the close of trading, the NGX All-Share Index declined by 708.14 points, or 0.68%, settling at 103,851.88. Market capitalisation followed suit, also dropping by 0.68% to end the day at ₦65.26 trillion.
Wednesday’s losses were largely driven by profit-taking activities and dividend-related adjustments in mid- and large-cap equities, particularly those in the banking sector.
Despite these setbacks, the session saw more advancing stocks than losers, indicating a positive market breadth. Nevertheless, the overall mood remained bearish due to the substantial decline in major indicators.
Trade volume declined by 4.64% to 351.66 million units, even as the total trade value rose by 26.12% to ₦13.71 billion, processed across 12,141 deals, according to data from Atlass Portfolios Limited.
ACCESSCORP led trading activity by volume, contributing 19.57% of the total shares exchanged. Other notable participants included GTCO (10.55%), FCMB (8.25%), UBA (7.57%), and CHAMS (7.06%).
On the value chart, GEREGU was the top performer, accounting for 37.53% of the total transaction value for the day.
Among the top gainers was ABBEYBDS, which appreciated by 9.99%. It was followed by SOVRENINS (+7.69%), NGXGROUP (+7.30%), FIDELITYBK (+6.74%), DEAPCAP (+6.67%), ELLAHLAKES (+6.62%), and several others.
Conversely, IMG led the losers with a 10.00% price drop. Other notable decliners included DAARCOMM (-7.94%), CUSTODIAN (-5.62%), CHAMS (-4.76%), ZENITHBANK (-3.93%), and GTCO (-1.58%).
In total, 25 stocks advanced while 19 declined, highlighting a generally mixed sentiment among market participants.
Sector-wise, performance was varied. The insurance and consumer goods segments posted gains of 0.80% and 0.34%, respectively. However, the banking and oil & gas sectors recorded losses, declining by 4.67% and 0.05%. The industrial goods sector ended the day unchanged.
In summary, renewed inflation concerns coupled with persistent sell-offs erased investor wealth by ₦445 billion on Wednesday, signalling a cautious outlook for the local equities market in the short term.
