Investors Lose N1.80trn as Bear Run Hammers NGX Index
Bearish runs in the stock market plunged the Nigerian Exchange (NGX) index downward, with investors’ wealth declining by N1.80 trillion week on week.
The market came under intense selling pressure, and the negative tide sharply reduced key performance indicators until the last trading session, when bulls retook control.
Although the benchmark index rebounded 2.19% day-on-day in the final trading session, the recovery was insufficient to erase losses accumulated earlier in the week.
Overall, NGX All-Share Index (ASI) declined by 1.21% week-on-week to close at 229,240.34 points, while market capitalisation fell by approximately ₦1.80 trillion to ₦147.10 trillion.
Stockbrokers reported that the market’s year-to-date return moderated to 47.31%, reflecting cautious investor positioning amid sustained profit-taking.
Market breadth remained weak, with 21 advancers against 57 decliners, translating to a market breadth ratio of 0.37x, Cowry Asset Management Limited told investors in a note.
Market analysts said this underscores the broad-based nature of the decline, as losses significantly outpaced gains across the market.
Despite the bearish sentiment, trading activity strengthened during the week, indicating increased market participation, Cowry Asset Management Limited said.
The investment firm noted that the number of deals, trading volume, and transaction value rose by 3.66%, 64.38%, and 14.80% week-on-week, respectively.
In total, investors exchanged 3.82 billion shares valued at ₦154.58 billion across 258,883 deals.
The increase in activity suggests that although investors remained cautious, they actively repositioned their portfolios in response to prevailing market conditions.
Sectoral performance remained overwhelmingly bearish during the week, with all major sectoral indices closing in negative territory as widespread profit-taking and cautious investor sentiment continued to weigh on market performance.
The Industrial Goods, Consumer Goods, and Oil & Gas sectors emerged as the worst-performing indices, reflecting sustained selloffs in several heavyweight stocks amid heightened portfolio rebalancing and weak market sentiment.
The Industrial Goods Index recorded the steepest decline, shedding 4.93% for the second consecutive week. The downturn was largely driven by aggressive selloffs in MEYER, Lafarge Africa, and Dangote Cement, as investors continued to lock in gains following the sector’s strong performance earlier in the year.
Similarly, the Consumer Goods Index fell by 4.56%, pressured by significant declines in McNichols, Honeywell Flour Mills, Unilever Nigeria, and NASCON Allied Industries, reflecting sustained profit-taking and concerns over rising operating costs and subdued consumer demand.
The Oil & Gas Index declined by 4.34% as investor sentiment weakened, largely due to losses in Aradel Holdings for the Commodities Index, although gains in Oando and Japaul Gold helped moderate the sector’s decline.
Meanwhile, the Banking Index retreated by 3.72%, weighed down by losses in Zenith Bank, GTCO, Jaiz Bank, and Fidelity Bank, as investors continued to rebalance portfolios ahead of the earnings season.
The Insurance Index also closed lower, declining 2.52% following heavy selloffs in International Energy Insurance, Universal Insurance, Guinea Insurance and NEM Insurance, highlighting the broad-based risk-off sentiment that dominated trading during the week.
On the gainers’ chart, AIRTELAFRICA led the market with a 21.0% appreciation, followed by REGALINS (+20.3%), UPDC (+12.3%), DANGCEM (+7.8%), and SUNUASSUR (+7.5%). The gains were largely driven by renewed buying interest in selected large-, mid-, and small-cap stocks.
Conversely, INTENEGINS topped the losers’ chart, shedding 18.8%, followed by MCNICHOLS (-18.6%), UPL (-17.5%), RTBRISCOE (-14.0%), and UPDCREIT (-13.0%), as profit-taking and sustained sell-side pressure continued to weigh on these counters.
“Looking ahead, the Nigerian equities market is expected to remain cautiously bearish as investors continue to lock in gains following the market’s strong year-to-date performance.
“Profit-taking is likely to persist, particularly in large-cap and recently appreciated stocks, while elevated interest rates and attractive fixed-income yields may continue to divert funds away from equities.
“Consequently, market performance in the coming week is expected to be driven by investors’ reaction to earnings expectations, macroeconomic developments, and sector-specific catalysts, with sentiment remaining broadly cautious”, Cowry Asset Limited stated.
