NGX Shrinks to N94.99trn as Equity Investors Lose N2.83trn
The Nigerian Exchange (NGX) market capitalisation shrank to N94.99 trillion as equity investors trading highs and lows lost N2.83 trillion in a week.
Stock market extended its bearish momentum this week as profit-taking dominated trading sentiment amid a combination of domestic and external headwinds.
The benchmark All-Share Index (ASI) fell by 2.99% week-on-week to close at 149,524.81 points, stockbrokers said in separate reports.
The slide in market index reflects sustained selling pressure as investors adjusted portfolios in response to geopolitical tensions surrounding the US-Nigeria diplomatic face-off.
Market value of listed equities declined by N2.83 trillion to N94.99 trillion, Cowry Asset Management said in an update, representing a 2.99% contraction in investors’ wealth over the five trading sessions.
Despite the downturn, the market still maintained a robust year-to-date (YTD) return of 45.27%, underscoring its overall resilience in a volatile macroeconomic environment.
Market breadth remained heavily skewed to the bears, closing at 0.27x with 20 gainers against 75 losers, a clear indication of widespread sell pressure across sectors.
Trading activity also slowed during the week, as total deals fell by 8.82% to 145,518 trades, while transaction volume and value plunged by 52.19% and 26.40% to 3.58 billion units and N107 billion, respectively.
Stock analysts at Cowry Asset reported that the decline in market activity suggests waning investor appetite and a cautious stance ahead of the year’s final trading months.
Across key sectors, performance was broadly negative, reflecting deepened profit-taking and sectoral weakness. The Banking index led the losers’ chart with a 3.85% weekly decline, pressured by selloffs in tier-one counters.
The Insurance sector fell by 7.56%, while the Consumer Goods and Oil & Gas indices retreated by 2.54% and 4.80%, respectively, amid weakening investor confidence.
Similarly, Industrial Goods and Commodity indices closed lower by 1.09% and 1.63%, rounding off a week dominated by red positions across the board.
On the gainers’ side, selective bargain-hunting supported a few counters, with NCR (+20.9%), EUNISELL (+20.2%), UNIONDICON (+9.9%), HONYFLOUR (+9.5%), and UPDC (+6.8%) emerging as top performers on renewed buying interest and improved liquidity positions.
Conversely, SOVRENINS (-28.2%), CILEASING (-20.2%), SKY AVN (-19.0%), BERGER (-17.4%), and INTENEGINS (-17.0%) suffered steep losses, reflecting sustained sell pressure and weak sentiment among retail and institutional investors alike.
“Looking ahead, the market is likely to remain cautious as investors continue profit-taking and reallocate capital in line with fiscal-year considerations.
“Although near-term volatility may persist, the impressive YTD gains suggest that underlying fundamentals remain relatively strong.
“Market direction in the coming weeks will likely be influenced by macroeconomic indicators, particularly inflation, exchange rate stability, corporate earnings updates, and liquidity flows from both local and foreign investors.
“However, investors are expected to maintain a selective approach, tilting toward fundamentally sound and defensive stocks capable of weathering short-term market swings,” Cowry Asset told investors.
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