Equities Investors Lost N2.09trn in Nigerian Stock Market
Equities investors recorded another weekly loss as selloffs wiped off N2.09 trillion from the Nigerian Exchange (NGX) market capitalisation.
This week, the Nigerian equities market extended its bearish trajectory, slipping below the 145,000 threshold to close at 143,722.62 points and registering a 2.24% week-on-week decline.
The downturn persisted on the back of an intensified profit-taking activities, a pattern that has become more pronounced as investors rebalance their portfolios ahead of year-end according to Cowry Asset.
Market analysts said the wave of selling pressure resulted in a notable contraction in market capitalization, which fell by 2.23% to N91.41 trillion.
Equities investors saw approximately N2.09 trillion wiped off valuations, pushing the NGX All-Share Index’s year-to-date return down to 39.64%.
Investors’ sentiment in the local bourse remained broadly negative, as reflected in the market breadth of 0.32x, where 19 gainers were heavily overshadowed by 60 decliners.
Stockbrokers highlighted that trading activity weakened across all key indicators, with the number of deals, trade volume, and transaction value declining by 19.96%, 63.95%, and 32.21%, respectively.
According to Cowry Asset Limited, turnover settled at 2.64 billion units valued at N106 billion across 107,622 trades, underscoring the cautious tone that dominated the week and the clear pullback in active participation.
Sector performance mirrored the overall bearish tone, reflecting the massive valuation loss posted week on week. The Industrial Goods sector led the decline with a sharp 4.50% drop, weighed down by notable pullbacks in ENAMELWA and DANGCEM.
The insurance sector followed with a steep 7.05% decline, driven by heavy sell-offs in VERITASKAP, AIICO, LIVINGTRUST, and NEM. Banking stocks were similarly pressured, falling 3.85% as losses in ACCESSCORP and UBA overshadowed mild bargain-hunting across the sector.
The consumer goods sector also faltered, shedding 3.50% due to declines in names such as MCNICHOLS and HONYFLOUR, while the Oil & Gas index dipped by 1.88% on the back of weakness in JAPAULGOLD and OANDO.
Even the Commodity Index, down 0.27% following price softness in ARADEL, joined the broad sweep of weekly declines, revealing a market-wide retreat in risk appetite.
Stockbrokers reported that despite the bearish landscape, a handful of counters delivered notable gains.
NCR topped the chart with an impressive 60.5% surge, followed by UPL at 17.6%, TANTALIZER at 17.3%, CAVERTON at 17.0%, and UACN at 16.7%, buoyed by renewed buying interest and favourable demand patterns.
On the opposite end, INTENEGINS emerged as the worst performer, falling 22.1%, while MCNICHOLS, VERITASKAP, AIICO, and LIVINGTRUST posted week-on-week declines ranging from 13.5% to 14.9%, largely due to persistent profit-taking and a deteriorating sentiment backdrop.
Looking ahead, Cowry Asset said the equities market is likely to maintain a cautious tone next week as portfolio rebalancing and end-of-year profit-taking continue to influence trading behaviour.
“Activity may remain subdued in the absence of a clear market catalyst, while sectoral performance could stay mixed given the competitive pull of elevated fixed-income yields.
“Nonetheless, selective bargain-hunting in oversold counters may spark brief periods of recovery, keeping the NGX on a sideways-to-slightly-bearish trajectory in the near term.
“Nevertheless, we continue to advice investors to take positions in stocks with sound fundamentals”, Cowry Asset said in a note. Fidelity Bank Posts N212 Billion as Profit in Q3
