NGX Return, Market Cap Drop as Equities Investors Lose N3.52trn
The Nigerian Exchange (NGX) year-to-date return and market capitalisation dropped as equities investors lost more than N3.52 trillion from their combined portfolio value week on week.
The stock market closed trading sessions last week on a bearish note, as renewed sell-offs in global equity markets weighed on domestic sentiment and triggered broad-based losses in the local bourse.
The NGX All-Share Index (ASI) fell 2.13% week-on-week (WoW) to 248,877.22 points, while market capitalisation fell by the same margin to N161.59 trillion.
Consequently, investors lost approximately N3.52 trillion in market value during the week, while the market’s year-to-date (YTD) return moderated to 59.93%.
The decline reflects profit-taking and portfolio rebalancing as investors position ahead of the year-end trading period, Cowry Asset Limited said in an update.
The investment firm said the downturn also highlights the fragile nature of the recent recovery, particularly as investors contend with elevated share prices, shifting portfolio allocations, and expectations around corporate earnings.
According to stockbrokers, the broad-based sell-off suggests selling pressure extended beyond a few heavyweight counters, with investors increasingly cautious about maintaining exposure amid heightened market volatility.
While the market continues to deliver a strong year-to-date return, market analysts said the latest correction suggests some participants are locking in gains and reassessing entry points.
Trading activity also weakened considerably, reflecting the subdued investor sentiment. Market breadth stood at 0.51x, with 29 gainers versus 57 decliners, indicating that decliners significantly outnumbered advancers.
This cautious mood also showed in market turnover, as traded volume and transaction value fell 62.87% and 67.32%, respectively, to 2.83 billion shares valued at N208.51 billion across 192,173 deals.
In its market update, Cowry Asset Limited said the sharp moderation in turnover suggests reduced market participation, as investors seemed less inclined to take fresh positions amid prevailing bearish sentiment.
Sectoral performance was broadly negative, as sell-offs across all major indices reinforced the market’s bearish close. The NGX Industrial Goods Index posted the steepest decline, shedding 4.35% amid price depreciation in HBM Nigeria, Dangote Cement, UPDCREIT, and CWG.
The NGX Oil & Gas Index followed, down 3.72%, weighed by declines in ETERNA, while the Banking Index fell 2.45%, pressured by sell-offs in ACCESSCORP, ZENITHBANK, FIRSTHOLDCO and FIDELITYBK.
The weakness across these sectors highlights the broad retreat in investor appetite, particularly in stocks that have contributed to the market’s earlier gains. Elsewhere, the NGX Commodity Index fell 2.33%, driven by losses in ARADEL, JAPAULGOLD and PRESCO.
The Consumer Goods Index shed 1.41%, while the Insurance Index fell marginally by 0.03%. Both sectors faced pressure from losses across several counters.
The relatively mild decline in Insurance, compared with other sectors, suggests some resilience, although broader market weakness limited its ability to close in positive territory, Cowry Asset Limited said.
At the stock level, HONEYFLOUR emerged as the best-performing equity of the week, gaining 30.8%, followed by TRANSPOWER (+23.4%), ETRANZACT (+14.4%), MANSARD (+9.8%) and THE INITIATE PLC (+9.6%).
Their gains suggest buying interest persisted despite the broader market sell-off. Meanwhile, VITAFOAM led the laggards, down 19%, followed by SOVRENINS (-17%), ETERNA (-15.8%), ABCTRANS (-13.6%), and INTENEGINS (-12.8%), reflecting sustained selling pressure across selected counters.
“… we expect market activity to remain sensitive to investor positioning, profit-taking and the search for attractive entry points. A recovery in buying interest could support a rebound in the coming week, particularly if investors take advantage of lower prices in fundamentally sound stocks.
“However, negative market breadth and a sharp decline in turnover suggest confidence may take time to fully recover. Attention is likely to remain on heavyweight equities, corporate earnings releases, dividend expectations and developments affecting domestic liquidity”. Cowry Asset Limited said. US Indexes Dip as Tech Earnings Disappoint, European Stocks Rally
