NGX Index, Return Shrink as Equity Investors Lose N713bn
The Nigerian Exchange (NGX) all-share index, year to date return and market capitalisation declined as a results of N713 billion drop in equity portfolio value. Investors lost N713 billion due to profit taking activities seen across sectoral indexes in the just concluded week amidst disinflation.
Stockbrokers reported that the Nigerian bourse posted broad-based declines, driven largely by sustained selloffs in Banking, Consumer Goods, Oil & Gas, Industrial Goods, and Commodity stocks.
The market digested the recently published July 2025 consumer price inflation data which saw a moderation to 21.88% year on year versus year to date return.
In spite of negative sentiment, the insurance Index outperformed significantly, surging 8.21% week-on-week, following renewed investor optimism after the Nigerian Insurance Act was signed into law.
Market reports revealed that the Nigerian Exchange All-Share Index declined by 0.77% week-on-week to close at 144,628.20 points, down from 145,754.91 points in the previous week. Equity market capitalisation fell by N713 billion to settle at N91.50 trillion, trimming the year-to-date return to 40.52%.
In a market update, Cowry Asset Limited said despite the overall downturn, investor sentiment remained relatively strong, as reflected in the positive market breadth, with 66 gainers against 41 decliners.
Stockbrokers highlighted that market activity was largely subdued as the number of deals fell by 1.11% week-on-week to 177,919, while total traded volume declined by 1.73% to 8.56 billion units, indicating reduced participation from both retail and institutional investors in key tickers.
Similarly, the total market value traded dropped sharply by 25.39% to N100 billion compared to the previous week. Sectoral performance was broadly negative, with five of the six tracked indices closing the week in the red, Cowry Asset Limited told investors in its market update.
The Oil & Gas sector led the losers, shedding 1.42% week-on-week, pressured by sustained selloffs in select mid-to-large-cap counters.
The downtrend was also mirrored across the Banking, Consumer Goods, Industrial Goods, and Commodity sectors, while the Insurance index stood out as the sole gainer. The Industrial Goods sector also closed weaker, down 0.83% due to losses in large-cap stocks.
The Consumer Goods index followed with a 0.94% week-on-week decline, while the Banking sector shed 0.23%. Similarly, the Commodities sector posted a marginal 0.03% loss, reflecting mild sell pressure.
In contrast, the Insurance sector outperformed significantly, advancing 8.21% week-on-week, buoyed by renewed investor optimism following the enactment of the Nigerian Insurance Act into law.
At the close of the week, top performers included Mutual Benefits Assurance with a 31.8% increase, TRIPPLE G with a 30.2% rise, SUNUASSUR gaining 23.8%, MECURE up by 20.5%, and DEAPCAP appreciating by 19.3%.
On the flip side, the worst-performing stocks were UPDC which declined by 17.7%, LIVINGTRUST down by 16.0%, BERGER shedding 14.7%, VFDGROUP dropping 11.2%, and UNILEVER falling by 10.3%.
“… We anticipate that weak sentiments will persist in the equities market as investors continue to balance profit-taking activities with selective bargain hunting”, Cowry Asset Limited said.
The firm explained that the release of July consumer price index figures is expected to further shape trading mood, while ongoing portfolio reshuffling and sector rotation will likely define market dynamics in the near term.
“As corporate earnings season progresses as well as the expectations for Bank financials, market players are digesting company results against the backdrop of cautious trading, while positioning for opportunities in fundamentally strong stocks.
“The current wave of sector rotation reflects investors’ preference for value plays, with price corrections creating attractive entry points despite prevailing volatility”.
“Thus, we expect intermittent pullbacks to strengthen the market’s upside potential as investors reallocate portfolios in response to both domestic economic indicators and global market trends.
“Accordingly, we advise investors to leverage price corrections and maintain a strategic focus on value-driven opportunities, while keeping an eye on macroeconomic developments that could influence sentiment”, Cowry Asset Limited told investors. #NGX Index, Return Shrink as Equity Investors Lose N713bn#
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