The Nigerian stock market reversed Monday’s gains on Tuesday, with heavy selloffs in major banking and consumer goods stocks wiping about N598.83 billion off investors’ wealth as cautious trading overshadowed a surge in transaction volume.

The bearish session saw the Nigerian Exchange (NGX) All-Share Index decline by 0.38 per cent to close at 244,802.83 points from the previous day’s close, trimming the market’s year-to-date return to 57.32 per cent. Market capitalisation fell to N158.02 trillion.

The downturn was driven by losses in blue-chip stocks, including First HoldCo Plc, which shed 3.0 per cent, Nestlé Nigeria Plc, down 2.8 per cent, United Bank for Africa Plc, which lost 2.2 per cent, and Guaranty Trust Holding Company Plc, which declined by 0.8 per cent. The market’s month-to-date return also slipped into negative territory at -0.2 per cent.

Investor sentiment remained firmly bearish, with market breadth closing at 0.32 times after only 13 stocks recorded gains against 40 decliners.

Among the day’s biggest losers were Multiverse Mining and Exploration Plc and LivingTrust Mortgage Bank Plc, both shedding 10 per cent, while McNichols Plc, Thomas Wyatt Nigeria Plc and Eterna Plc also featured prominently on the losers’ chart.

On the positive side, Ava Capital Management Plc led the gainers with a 9.9 per cent appreciation, followed by Livestock Feeds Plc, Neimeth International Pharmaceuticals Plc, AIICO Insurance Plc and Nigeria Real Estate Investment Trust.

Sectoral performance reflected the weak mood across the market, with the Banking Index posting the steepest decline of 1.27 per cent. The Consumer Goods Index fell 1.25 per cent, while the Insurance Index dropped 1.11 per cent. The Oil and Gas Index managed a marginal gain of 0.05 per cent, while the Commodity Index inched up 0.01 per cent. The Industrial Goods Index closed flat.

Despite the broad market weakness, trading activity was robust. Total volume traded surged by 69.25 per cent to 1.56 billion shares, indicating increased participation by investors. However, the value of transactions declined by 24.09 per cent to N28.73 billion, exchanged in 54,160 deals, suggesting that much of the activity was concentrated in relatively low-priced stocks.

Japaul Gold & Ventures Plc dominated the volume chart with 904.42 million shares traded, while MTN Nigeria Communications Plc emerged as the most valuable stock traded, accounting for N3.25 billion worth of transactions.

Market analysts attributed the day’s losses to sustained profit-taking in banking and consumer goods counters after the previous session’s rally. They, however, expressed optimism that sentiment could improve as more listed companies release their half-year earnings, with stronger-than-expected results likely to trigger renewed demand for fundamentally sound stocks.

Investors are expected to closely monitor the ongoing corporate earnings season, which could determine the market’s near-term direction and influence portfolio repositioning in the weeks ahead. (Nigerian Tribune)