NGX Sinks, Equities Investors Lose N1.58trn in Pre-Earnings Selloffs
The Nigerian Exchange (NGX) indicators slumped, with a N1.58 trillion week-on-week reduction in market capitalisation due to weak buying interest in the local bourse ahead of Q3 earnings release.
The local bourse closed trading sessions on a bearish note as renewed sell-offs across selected stocks weighed on overall market performance.
The market index, or All-Share Index (ASI), declined by 0.97% week-on-week (WoW) to close at 248,363.55 points, while market capitalisation shed approximately N1.58 trillion to N161.26 trillion.
Consequently, the market’s year-to-date (YTD) return moderated to 59.60%, tracking ahead of the country’s consumer price index that measures inflation.
Market sentiment remained weak, as market breadth closed negative with 54 decliners versus 23 advancers, yielding a breadth ratio of 0.43x and indicating that losses outweighed gains across the market.
Stockbrokers reported that trading activity was mixed, with the number of deals and transaction value increasing by 1.65% and 2.14% week-on-week, respectively, while trading volume declined by 14.22%.
Overall, investors traded 2.72 billion shares valued at N158.42 billion across 210,385 deals during the week, Cowry Asset Securities Limited reported in its market update.
The investment firm revealed that sectoral performance on the Nigerian Exchange closed the week predominantly in negative territory, as four of the five major sectors recorded losses amid broad-based selling pressure.
The sectoral performance points to persistent risk aversion, particularly in Oil and Gas and Banking stocks, while the marginal gain in Industrial Goods suggests selective buying interest rather than a broad-based market recovery.
The Oil and Gas sector led the downturn, declining by 3.85%, dragged by ARADEL and ETERNA, which outweighed a 4.00% gain in OANDO.
The Banking sector followed with a 2.64% decline, driven by losses in FIDELITYBK, FIRSTHOLDCO, and GTCO, despite a marginal gain in ZENITHBANK.
‘The Insurance sector shed 1.74%, as losses in MANSARD and CONHALLPLC outweighed significant gains in GUINEAINS and REGALINS.
Similarly, the Consumer Goods sector declined by 0.58%, pressured by NESTLE, HONYFLOUR and UNILEVER, despite advances in MULTITREX and DANGSUGAR.
In contrast, the Industrial Goods sector was the sole gainer, edging up by 0.02%, supported by strong performances in TRIPPLEG and CAP, which offset a decline in CUTIX.
LIVESTOCK led the gainers’ chart, appreciating by 47.8% during the week. TRIPPLEG followed with a gain of 32.6%, while GUINEAINS, LEARNAFRICA, and UPDCREIT advanced by 29.2%, 19.6%, and 16.2%, respectively. On the decliners’ chart, CMFC recorded the steepest loss, declining by 20.3% over the week.
ABCTRANS fell by 18.2%, while JAPAULGOLD, FIDELITYBANK, and ARADEL shed 11.1%, 10.6%, and 10.0%, respectively.’
Going forward, stock analysts at Cowry Asset Securities said they expect the Nigerian equities market to remain cautious in the coming week, as persistent selling pressure and negative market breadth may weigh on investor sentiment.
However, bargain-hunting in fundamentally strong stocks could provide some support, while market performance is likely to remain stock-specific, the investment firm told investors in a note. Fitch Revises Nigeria’s Outlook to Positive, Anticipates Tinubu 2027 Election Win
