Bears Touches ‘Knock Off’ N2.3trn from Nigerian Stock Market
The Nigerian Exchange (NGX) lost about N2.3 trillion of its market capitalisation due to some bears touches on key stocks. The equities market extended its bearish run in the just-concluded week, maintaining the negative momentum carried over from the previous week.
Key performance indicators were weighed down by widespread declines across major sectors, as persistent bearish sentiment fuelled sustained sell-offs in banking, insurance, oil & gas, and industrial goods stocks.
However, in sharp contrast, the Consumer Goods Index bucked the trend, advancing by 0.83% week-on-week, according to a stockbroker’s report released by Cowry Asset Limited.
Market analysts said the uptick posted by the consumer index was supported by renewed investor interest and optimism in select counters such as International Breweries Plc and Champion Breweries, which drove the sector’s resilience amid the broader market downturn.
Consequently, the All-Share Index (ASI) shed 0.77% week-on-week, closing at 144,628.20 points compared to 145,754.91 points in the prior week. In line with this trend, Nigerian stock market capitalisation dipped by N2.29 trillion to N89.21 trillion, reducing the year-to-date return to 37.00%.
The prevailing downturn dampened investor sentiment, as reflected in a weak market breadth of 0.80x, with 43 gainers against 54 decliners. Market activity remained largely muted during the week, Cowry Asset Limited reported that investor participation weakened across key counters.
The number of deals dropped by 14.21% week-on-week to 152,634, while total traded volume declined significantly by 36.65% to 5.43 billion units, reflecting reduced interest from both retail and institutional players.
In contrast, the total value of trades advanced by 8.47% to N89 trillion, driven by higher-value transactions despite the overall slowdown in market activity. Sectoral performance was broadly bearish, as four of the six tracked indices closed the week in negative territory.
The Industrial Goods index led the laggards, plunging 8.42% week-on-week on the back of sustained sell-offs in select mid- to large-cap stocks. Similar downtrends were observed in the banking, insurance, and oil & gas sectors.
On the flip side, the Consumer Goods index emerged as the lone gainer, bucking the overall market weakness. The insurance sector also closed weaker, recording a 4.17% decline, weighed down by losses in large-cap stocks such as Lasaco and NEM Insurance.
Similarly, the Banking index fell by 3.48% week-on-week, while the Oil & Gas sector shed 0.84%. In contrast, the Commodity Index closed flat, according to market data.
In contrast, the consumer goods sector posted a modest gain, rising 0.83% week-on-week, supported by renewed investor optimism. At the close of the week, top performers included AUSTINLAZ with a 20.8% increase, NCR with a 20.7% rise, ENAMELWA gaining 19.4%, GUINEAINS up by 18.8%, and MBENEFIT appreciating by 14.3%.
On the flip side, the worst-performing stocks were THOMASWY which declined by 18.9%, NEM down by 18.2%, STANBIC shedding 15.4%, LASACO dropping 14.6%, and RTBRISCOE falling by 13.9%.
Cowry Asset Management Limited expects the Nigerian equities market to trade mixed in the new week, with cautious sentiment dominating overall performance.
Persistent pressure on banking and industrial goods stocks may continue to weigh on the market, especially as investors remain wary of macroeconomic headwinds and tight liquidity, the investment firm added. However, bargain-hunting in oversold counters, particularly within the consumer goods sector, could trigger mild recoveries.
In the absence of any major policy pronouncements or positive earnings releases, stockbrokers said the market activity is likely to remain subdued, with the NGX All-Share Index projected to move within a narrow band. #Bears Touches ‘Knock Off’ N2.3trn from Nigerian Stock Market OMO, T-Bills Yields Ease as Investors Boost Holdings
