NGX: Banking, Insurance Losses Wipe N1.88trn From Investors’ Wealth

• Nigeria's stock market fell sharply on Tuesday, erasing N1.88 trillion in market value as banking and insurance stocks led a broad sell-off
• The NGX All-Share Index dropped 1.17% to 244,802.11 points, pulling the market's year-to-date return down to 57.31%
• Only four stocks advanced against 65 decliners, with Abbey Mortgage Bank posting the steepest loss among individual stocks

Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

Nigeria’s equities market closed sharply lower on Tuesday, September 8 as heavy losses in banking and insurance stocks wiped N1.88 trillion from investors’ wealth.

The Nigerian Exchange Limited All-Share Index (ASI) fell 1.17% to 244,802.11 points, from the previous session, reducing its year-to-date return to 57.31% from 59.18%.

Market capitalisation also declined to N158.72 trillion, reflecting widespread selling pressure across major market segments.

The banking sector recorded the steepest decline, falling 5.29% as investors sold several major lenders following the market’s strong gains this year.

Trading activities

A total of 753.18 million shares worth N27.82 billion changed hands in 54,051 deals. Trading volume increased by 84.67% from the previous session, while transaction value rose by 2.09%.

The number of deals also increased by 3.30% during the session. The market breadth showed the extent of the sell-off, with only four stocks recording gains against 65 decliners, Leadership reports.

Sector performance

• NGX Banking Index led the sectoral losers, falling 5.29%.
• NGX Insurance Index declined 4.38%.
• NGX Industrial Goods Index fell 0.64%.
• NGX Consumer Goods Index gained 0.49%.
• NGX Oil and Gas Index rose 5.76%.
• NGX Commodities Index advanced 4.04%.

Top gainers

• Ellah Lakes rose from N9.20 to N9.85, gaining N0.65, or 7.07%.
• NGX Group increased from N130.10 to N131.90, adding N1.80, or 1.38%.
• Learn Africa advanced from N8.65 to N8.75, gaining N0.10, or 1.16%.
• Wema Bank rose from N29.50 to N29.70, adding N0.20, or 0.68%.
• Chellaram remained unchanged at N9.70.

Top losers

• Abbey Mortgage Bank fell from N7.70 to N6.95, losing N0.75, or 9.74%.
• FTG Insurance declined from N1.82 to N1.64, shedding N0.18, or 9.89%.
• CMFC dropped from N2.38 to N2.15, losing N0.23, or 9.66%.
• AVA Capital fell from N6.00 to N5.40, losing N0.60, or 10.00%.
• FGSUK2033S6 declined from N115.00 to N100.49, shedding N14.50, or 12.61%.

Most active stocks

• NEM Insurance led trading activity with 131.73 million shares valued at N4.07 billion.
• Mutual Benefits Assurance followed with 88.13 million shares worth N268.85 million.
• Sterling Financial Holdings Company recorded 40.86 million shares valued at N308.57 million.
• Access Corporation traded 36.91 million shares worth N1.05 billion.
• Consolidated Hallmark Insurance recorded 35.52 million shares valued at N223.07 million.

Steps to buy shares from September 14 with N5,250

Earlier, Legit.ng reported that the Securities and Exchange Commission has approved the Dangote Petroleum Refinery and Petrochemicals FZE initial public offering, clearing the way for Nigerians and other eligible investors to buy into one of Africa's biggest industrial projects.

The regulator approved the offer of 4.1 billion ordinary shares at N525 each, a transaction that could raise roughly N2.15 trillion if fully subscribed.

The SEC also registered the refinery's existing 120.13 billion ordinary shares.