NGX Index, Return Tank as Investors Lose N2.1trn in 5 Days
The Nigerian Exchange (NGX) All-Share Index (ASI) tanked, with equities investors losing N2.1 trillion in an all-week bearish movement in the local bourse.
The local bourse closed the trading session on a negative note last week, weighed down by sell-offs across key counters. The market index declined by 1.35% week-on-week (WoW) to close at 239,351.16 points, while market capitalisation fell by approximately N2.09 trillion to N154.53 trillion.
Consequently, the market’s year-to-date (YTD) return moderated to 53.81%. Market breadth remained negative, with 18 gainers against 58 losers, translating to a breadth ratio of 0.31x.
The negative breadth reflects cautious investor sentiment, as declining stocks significantly outnumbered advancing counters during the week, Cowry Asset Limited said in its market update.
Trading activity also weakened, pointing to subdued investor participation. The number of deals, trading volume and transaction value declined by 16.79%, 48.64% and 10.46% WoW, respectively. In total, investors exchanged 6.24 billion shares, valued at N157.85 billion, across 186,772 trades.
Sectoral performance closed the week broadly negative, with all tracked sectors either recording declines or remaining flat, reflecting sustained selling pressure and profit-taking across the market.
The Oil & Gas sector led the losers’ chart, declining 5.29%, driven largely by sharp losses in ARADEL (- 9.99%) and JAPAULGOLD. The Insurance sector followed with a 3.55% decline, weighed down by significant sell-offs in INTENEGINS, FTGINSURE and NEM.
Banking also came under pressure, falling 2.92% as investors trimmed positions in FIDELITYBK, FIRSTHOLDCO, FCMB and GTCO. Meanwhile, the Consumer Goods sector shed 2.09%, pressured by losses in MCNICHOLS, INTERBREW and PZ.
The Industrial Goods sector was the only sector to remain flat, although declines in MEYER and CUTIX highlighted pockets of weakness. On the gainers’ chart, HMCALL emerged as the week’s best-performing stock, appreciating by 32.3%.
It was followed by TRANSEXPR, which gained 16.2%, while DANGSUGAR, CADBURY, and UACN advanced by 5.2%, 4.7%, and 4.6%, respectively. The gains across these counters reflected sustained buying interest in large-, mid-, and small-cap equities, despite broader market weakness.
On the decliners’ chart, INTENEGINS recorded the steepest decline, shedding 27.3% during the week. FTGINSURE followed with a 24.0% decline, while ROYALEX, REDSTAREX, and UPDC fell by 18.5%, 18.3%, and 10.7%, respectively.
The declines were largely attributed to profit-taking and persistent selling pressure across the affected counters, contributing to the market’s overall negative performance during the week.
Cowry Asset Limited expects the market to remain volatile and cautious in the short term amid continued profit-taking.
However, the firm stated that the medium-term outlook remains cautiously positive, supported by strong earnings and attractive valuations, with investors likely to favour fundamentally sound stocks. #NGX Index, Return Tank as Investors Lose N2.1trn in 5 Days# Insurance Stocks Drive NGX Trading Volume, Turnover Drops
