NGX Equity Market Loses N1.76tn Amid Heavy Sell-Offs in BUA Foods and Banking Stocks

The Nigerian equities market closed on a downward trajectory on Wednesday as intense selling pressure across heavy-weight consumer goods and major banking stocks wiped over N1.76 trillion off the total market capitalization.

The benchmark All-Share Index (ASI) retreated by 1.12 percent to close at 243,967.09 points, down from Tuesday’s 246,723.57. Consequently, total market capitalization fell to N157.49 trillion.

The market contraction unfolded against the backdrop of sustained monetary tightening, with the Central Bank of Nigeria maintaining its benchmark Monetary Policy Rate at 26.50 percent.

The consumer goods sector bore the brunt of the day’s losses. BUA Foods Plc hit a maximum daily loss of 10.00 percent to close at N760.60 per share, while Unilever Nigeria Plc dropped 9.97 percent to finish at N131.40 per share.

The banking sector also experienced broad downward revaluations, pulling the NGX Banking Index lower. Key tier-one and tier-two lenders recorded losses, including Access Holdings Plc, down 3.01 percent to N27.40; Fidelity Bank Plc, shedding 2.27 percent to N21.50; United Bank for Africa Plc, dropping 2.15 percent to N45.45; and Zenith Bank Plc, declining 1.34 percent to N124.80.

Bucking the bearish trend in the financial sector, Ecobank Transnational Incorporated surged 9.93 percent to hit N71.40 per share. Jaiz Bank Plc and Wema Bank Plc also recorded moderate gains, rising 2.33 percent and 1.58 percent to close at N8.80 and N28.95, respectively.

The insurance sector demonstrated resilience, with the NGX Insurance Index rising to 1,152.13 points. Gains were driven by International Energy Insurance Plc, which spiked 10.00 percent to N4.40, alongside Cornerstone Insurance Plc, which appreciated 6.80 percent to N5.50.

Market activity remained high as investors executed 39,031 deals involving over 1.45 billion shares, driven heavily by high-volume trading in insurance equities and select technology tickers.