Nigerian Stock Market Cap. Declines by N206bn to N160.52trn
The Nigerian Exchange (NGX) market capitalisation dropped by N206 billion to N160.52 trillion week-on-week, delivering about a 59% year-to-date return.
The Nigerian equities market closed bearish last week, as renewed sell-offs in selected stocks weighed on overall performance. The local bourse saw a last minute rally that reversed sustained losses posted during the week.
The benchmark NGX All-Share Index (ASI) fell 0.97% week-on-week to 247,222.27 points, while market capitalisation fell by about N206 billion to N160.52 trillion.
Consequently, the market’s year-to-date (YTD) return moderated to 58.87% after the latest round of bearish touches on key sectoral names.
Investor sentiment remained weak, as market breadth closed negative, with 20 gainers versus 55 decliners, yielding a breadth ratio of 0.36x and underscoring the dominance of declining stocks, Cowry Asset Securities Limited said in its update.
Stockbrokers reported mixed trading activity, with trading volume and transaction value up 7.17% and 12.81% WoW, respectively, while the number of deals fell by 6.23%.
Overall, investors traded 1.78 billion shares valued at N110.81 billion across 173,403 deals during the week, according to stockbrokers at Cowry Asset Securities Limited.
Sectoral performance on NGX ended the week mixed, with Industrial Goods leading gains with a 1.95% advance, while Insurance posted the steepest decline at 2.80%. MEYER and DANGCEM drove the Industrial Goods sector’s gains, offsetting losses in HBMNG and TRIPPLEG.
The sector’s advance suggests sustained buying interest in selected industrial stocks, particularly DANGCEM, although losses in some constituents limited broader participation in the rally.
Conversely, the Insurance sector declined by 2.80%, weighed down by losses in REGALINS, LINKASSURE and AIICO, despite a 1.25% gain in WAPIC. The Oil and Gas sector followed, down 2.55%, as sell-offs in ARADEL, OANDO and ETERNA weighed on the sector.
The downturn in major oil and gas counters suggests a reversal of the buying momentum seen last week, as investors reassessed their positions in the sector.
The Banking sector also closed lower, shedding 0.67%, as declines in ACCESSCORP, UBA and ZENITHBANK outweighed gains in FIRSTHOLDCO and FIDELITYBK.
Similarly, the Consumer Goods sector lost 0.55%, dragged down by INTBREW, VITAFOAM and DANGSUGAR. However, gains in NASCON, MULTITREX and PZ provided some support, limiting the sector’s overall decline.
On the gainers’ chart, ABCTRANS led the market with a 20.7% appreciation, followed by AVACAP, which gained 17.7%. CAVERTON, FIDELITYBK, and MULTITREX also gained 17.1%, 14.0%, and 10.0%, respectively.
Conversely, UPDCREIT led the decliners, shedding 17.3% during the week. OMATEK followed, down 12.5%, while UPL, REGALINS, and NGXGROUP fell 12.1%, 11.3%, and 10.3%, respectively.
UPDCREIT recorded the steepest decline, shedding 11.9% over the week. ENAMELWA followed, down 10.0%, while NASCON, TRANSEXPR, and LIVINGTRUST fell 9.5%, 9.1%, and 8.4%, respectively.
Cowry Asset Limited said corporate earnings expectations, valuation levels, dividend prospects, and broader investor sentiment amid evolving macroeconomic conditions are likely to shape market direction going forward.
Stockbrokers said negative market breadth, with decliners significantly outnumbering gainers, points to persistent selling pressure and suggests investors may remain cautious and selective, favouring fundamentally strong stocks with attractive valuations, sustainable earnings, and consistent dividend potential.
Nevertheless, continued price adjustments could create opportunities for bargain-hunting in quality equities, potentially supporting a market rebound if buying interest strengthens.
However, Cowry Asset Limited told investors in its market update that the sustainability of any recovery will depend on improved investor confidence and broader demand returning across key sectors. Wall St. Up on Mega-Stock Rally, Unrest Keeps European Markets on Edge
