The Nigerian Exchange (NGX) saw a significant reversal in gains on Wednesday, April 16, as investors witnessed a loss of N445 billion. This decline was largely attributed to a widespread sell-off in banking stocks, particularly Guaranty Trust Holding Company (GTCO) and Zenith Bank, which drove the market into the red.
By the close of trading, the All-Share Index had fallen by 708.14 points, representing a 0.68% decline, settling at 103,851.88 points. This drop also caused the overall market capitalization to decrease from N65.7 trillion to N65.3 trillion, resulting in a N445 billion loss in value.
Banking Stocks Lead the Decline
The downturn was primarily driven by sharp sell-offs in major banking stocks. Guaranty Trust Holding Company emerged as the worst performer, experiencing an 11.94% drop, closing at N59.00 per share. Zenith Bank followed closely with a 11.65% decline, closing at N44.00 per share.
Other notable decliners included Industrial and Medical Gases, which fell by 10%, Guinea Insurance, which dropped by 9.52%, and UPDC Real Estate Investment Trust, which saw an 8.2% decline.
Mixed Performance Among Other Equities
Despite the overall bearish trend, there were some gainers in the market. A total of 124 listed equities participated in the day’s trading, with 24 recording gains while 21 posted losses. Leading the gainers was Abbey Mortgage Bank, which surged by 9.99%, closing at N8.15 per share. Other top gainers included Sovereign Trust Insurance (up 7.69%), Nigerian Exchange Group (up 7.3%), and Deap Capital Management and Trust (up 6.67%).
Mixed Market Activity
On the trading volume front, 351.66 million shares valued at N13.71 billion were exchanged across 12,141 deals. This reflected a 5% decline in trading volume compared to the previous session, though turnover saw a 26% increase, while the number of deals dropped by 8%.
In terms of volume, Access Holdings led with 68.2 million shares traded, followed by GTCO with 36.8 million shares, FCMB Group with 28.8 million shares, and United Bank for Africa (UBA) with 26.4 million shares.
Sector Performance and Broader Market Trends
On the sectoral front, NGX Top 30 Index fell by 0.72%, while the NGX Oil and Gas Index dipped by 0.05%. The NGX Industrial Index remained relatively flat, but the NGX Insurance Index saw a 0.8% increase, and the NGX Consumer Goods Index rose by 0.34%. The NGX Pension Index also posted a modest gain of 0.09%.
Looking at broader market performance, the NGX recorded a 1-week loss of 0.32% and a 4-week loss of 1.84%, although it still holds a 0.9% year-to-date gain.
A Bounce-Back the Day Before
On the previous trading day, Tuesday, the market had experienced a N19 billion gain, pushing the market capitalization back to N65.7 trillion at the close of trading.
