MORGANABLE BUSINESS / MARKETS
Nigeria’s stock market began November on a negative note on Monday, November 2, as losses in major companies pushed market capitalisation down by about ₦35.25 billion.
Akure —
Nigeria’s stock market began November on a negative note on Monday, November 2, as losses in major companies pushed market capitalisation down by about ₦35.25 billion.
The decline came after two consecutive sessions of gains on the Nigerian Exchange Limited (NGX). It reflected renewed selling pressure in banking, oil and gas, and consumer goods shares.
The NGX All-Share Index fell by 0.02 per cent to close at 254,245.21 points, compared with 254,299.49 points at the end of the previous trading session.
Consequently, market capitalisation slipped to about ₦165.08 trillion from roughly ₦165.11 trillion. The market’s year-to-date return, however, remained positive at 63.38 per cent.
The modest fall in the benchmark index did not mean that most shares held steady. Market breadth was negative, with 41 stocks recording losses while 21 advanced.
This showed that declining shares outnumbered gainers by a wide margin. It also suggested that selling pressure affected several parts of the market, rather than only a few large companies.
HEAVYWEIGHT STOCKS DRIVE THE DECLINE
Several large and medium-sized companies contributed to the market’s weak performance. Aradel Holdings, International Breweries, Zenith Bank and Access Holdings were among the stocks that faced selling pressure.
Their declines added to losses across the oil and gas, banking and consumer goods sectors.
Aradel Holdings fell by about 9.99 per cent to close at ₦1,296 per share, from ₦1,439.90. Access Holdings also declined, while Zenith Bank and other financial stocks recorded losses.
International Breweries dropped by 8.6 per cent, adding to the pressure from consumer goods shares. These movements helped pull the market lower.
The steepest percentage losses came from Champion Breweries and SUNU Assurances Nigeria, which each shed 10 per cent. Champion closed at ₦8.10 per share, while SUNU Assurances ended at ₦2.70.
Aradel followed closely, losing almost 10 per cent. Vitafoam Nigeria also fell by 9.97 per cent to ₦157.20, while Cornerstone Insurance dropped 9.89 per cent to ₦4.10.
However, some stocks moved against the market trend. Consolidated Hallmark Holdings led the gainers, rising 10 per cent to ₦7.15 per share.
Livestock Feeds gained 9.77 per cent to close at ₦14.60, while AXA Mansard Insurance advanced 9.30 per cent to ₦11.75. UPDC rose 7.46 per cent to ₦3.60, and NPF Microfinance Bank added 7.14 per cent to close at ₦4.50.
OIL AND GAS, BANKING SHARES UNDER PRESSURE
Sector performance also reflected the uneven mood across the exchange. The NGX Oil and Gas Index recorded the largest decline, falling 3.75 per cent to 5,857.51 points.
The commodities index followed with a 2.76 per cent loss to 1,843.21 points. These declines placed energy-related and commodity stocks among the main sources of market weakness.
Banking shares also struggled during the session. The NGX Banking Index fell 1.79 per cent to 2,386.08 points, as investors sold shares in some major lenders.
Consumer goods stocks lost 1.17 per cent, with pressure on companies including International Breweries and Vitafoam. Together, these declines weighed on the market’s performance.
In contrast, the industrial sector provided some support. The NGX Industrial Index rose 3.34 per cent, making it the strongest-performing sector in the session.
The insurance index also gained 0.93 per cent. These advances helped limit the broader market’s fall, although they could not reverse the losses recorded elsewhere.
TRADING ACTIVITY SLOWS
Trading data showed a mixed pattern on Monday. The exchange recorded 54,015 deals, representing a 42.63 per cent increase from 37,870 transactions in the previous session.
However, investors traded 517.26 million shares, down 48.15 per cent from 997.57 million shares. The total value of transactions also fell by 44.67 per cent to ₦47.48 billion from ₦85.81 billion.
Honeywell Flour Mills recorded the highest trading volume, with about 74.19 million shares exchanged.
Access Holdings followed with approximately 41.60 million shares, while GTCO recorded about 41.07 million shares.
Fidelity Bank and Consolidated Hallmark Holdings also featured among the most actively traded stocks.
INVESTORS WATCH THE NOVEMBER OUTLOOK
Monday’s performance gives investors an early indication of the pressures facing the market this month.
The negative market breadth suggests that caution remained widespread, while declines in banking and oil and gas shares weighed on sentiment.
However, the market’s year-to-date return of 63.38 per cent shows that equities have recorded substantial gains.
Market analysts will watch whether selling pressure continues in heavyweight stocks during the coming sessions. They will also monitor whether investors return to companies whose share prices have fallen.
Selective bargain-hunting could support a recovery if buyers consider some stocks attractive at their lower prices. However, that possibility will depend on actual trading activity.
The performance of the industrial and insurance sectors may also influence the market’s direction.
Continued gains in these areas could provide support, particularly if buying interest spreads to more listed companies.
On the other hand, further declines in banking, energy and consumer goods shares could keep the benchmark under pressure.
Investors are also likely to assess company results, corporate announcements and broader economic developments before making decisions.
These factors can influence expectations about earnings, costs and future growth. However, a single session does not establish a lasting market trend.
Subsequent trading days will provide a clearer picture of whether Monday’s decline signals a wider shift in sentiment.
For now, the NGX has opened the month with an index decline but a ₦35.25 billion reduction in market value.
The session also recorded more declining stocks than advancing ones, alongside lower traded volume and value.
While selected shares posted gains, losses in heavyweight counters shaped the overall result. Investors will now look to the next sessions for signs of renewed buying interest or continued caution.
