Market Wrap: NGX Index Hits 4-Week Low as Investors Lose N441bn
The Nigerian Exchange (NGX) All-share index dived as equities investors lost about N441 billion over five trading sessions in the just concluded week due to profit-taking activities.
The domestic bourse closed the week on a bearish note as investors continued to adopt a cautious stance amid an earnings season that has so far delivered little in the way of surprises.
The equities market index declined by 0.90% week-on-week, settling at 104,563.34 points – its lowest level in four weeks, Cowry Asset Limited said in an update. Stockbrokers said despite ongoing dividend announcements and corporate disclosures, investor appetite remained subdued.
The tamed hunting in the equities market suggests that investors are more focused on macroeconomic signals than company-level news. Cowry Asset Limited noted that the 90-day pause on US tariffs offered some relief globally, but it failed to spark a meaningful rally on Customs Street.
Instead, profit-taking and portfolio rebalancing dominated trading as investors rotated out of high-flyers and re-entered defensive counters, stockbrokers said. The market value of all listed stock declined by N440.51 billion, reflecting investors weak sentiment. The NGX market cap declined despite the admission of 5.98 billion additional shares of First HoldCo Plc to the NGX Daily Official List.
The market’s breadth was decisively negative, with just 27 gainers against 56 losers, translating to a negative breadth ratio of 0.48x, according to stockbrokers report.
This clearly shows the extent of the weakness, as sell-offs cut across most sectors. However, the uptick in trading activity suggests that investors are still scanning for opportunities, with weekly volume and value traded surging by 76.92% and 83.48%, respectively, to 2.09 billion units and N52.97 billion.
The number of deals also increased by over 52%, pointing to increased bargain hunting, especially in low-priced, high-beta stocks.
Sectoral performance was largely negative, reflecting risk-off sentiment. The insurance index led the losses, down 4.57% as counters like ROYALEX, CORNERST, and LASACO saw steep declines, erasing earlier gains from previous weeks.
The banking index followed closely, losing 2.20% amid profit-booking in names like ACCESSCORP and ETI. Meanwhile, the Consumer Goods and Oil & Gas indices shed 0.61% and 0.50%, respectively, pressured by declines in MAYBAKER, ETERNA, PZ, and OANDO.
Even traditionally defensive sectors were not spared, with the Industrial and Commodity indices falling by 0.26% and 0.10%, respectively, dragged by losses in UPDC, CUTIX, and ARADEL.
Despite the generally bearish tone, there were bright spots in the market. Stocks like VFD Group (+53.9%), UNION DICON (+31%), ABBEYBDS (+29.6%), and FTN Cocoa (+18.8%) saw strong gains as investors chased speculative upside and played on momentum.
On the flip side, ROYALEX (-20.8%), CORNERST (-15.2%), SOVRENINS (-15%), LASACO (-12.8%), and CAP (-11.7%) closed the week as the worst performers, underscoring the selective nature of the selloff.
Looking ahead, the short-term outlook for the market remains cautious. All eyes are now on the March consumer price index data and the Q1 2025 macroeconomic report, which are expected to offer more clarity on the direction of the economy and set the tone for risk sentiment.
The market is currently sitting in oversold territory, which may provide a technical basis for a short-term rebound. However, sustained recovery will likely depend on improvements in economic indicators, policy clarity, and fresh triggers from corporate earnings.
“Until then, we expect continued sector rotation, with investors favouring value names and defensive plays with strong fundamentals and resilient earnings power”, Cowry Asset Limited said.
Overall, the equities market capitalisation fell by N441.50 to close at N65.71 trillion. #Market Wrap: NGX Index Hits 4-Week Low as Investors Lose N441bn First Holdco Falls below N1 Trillion in Equities Market
