Nigerian Stock Market Cap Shrinks N2.42trn to N148.91trn
Due to sell-off pressure in oil, gas, and industrial stocks, the Nigerian Exchange (NGX) market capitalisation shrank by N2.42 trillion to N148.91 trillion at the close of trading last week.
The local bourse experienced a two-day rally, followed by three consecutive sell-offs as investor sentiment shifted. The stock market experienced sustained selling pressure across major counters, dragging key performance indicators, with year-to-date returns moderated sharply to 49.12%.
Due to risk-off sentiment, the benchmark NGX All-Share Index (ASI) declined by 1.65% week-on-week to close at 232,049.02 points.
Hence, the market’s year-to-date return moderated to 49.12%, reflecting a more cautious investment outlook amid continued profit-taking. Market breadth remained firmly in negative territory, with 19 gainers compared to 59 losers, translating to a breadth ratio of 0.32x.
Stockbrokers said this indicates that losses were widespread across the market, highlighting weak investor appetite and broad-based declines in share prices. Trading activity also weakened during the week, reflecting reduced market participation.
The number of deals, trading volume, and transaction value declined by 13.14%, 24.42%, and 85.58%, respectively. Overall, investors traded 2.32 billion shares worth ₦36.74 billion across 249,747 deals, suggesting that market participants remained selective and adopted a cautious approach to portfolio positioning.
Sectoral performance was broadly bearish during the week, with three of the five major indices closing lower. The Oil & Gas sector led the laggards for the second consecutive week, shedding 9.86% on sustained sell-offs in ARADEL, OANDO, and JAPAULGOLD.
The Industrial Goods sector followed, declining 8.21% amid profit-taking in CUTIX, BUACEMENT, DANGCEM, and PREMPAINTS, while the Insurance sector lost 4.39% due to renewed weakness in REGALINS, CONHALLPLC, and SOVRENINS.
Conversely, the Banking sector gained 3.51%, supported by renewed buying interest in GTCO, ZENITHBANK, FIDELITYBK, and UBA, while the Consumer Goods sector advanced 2.40%, buoyed by strong demand for MCNICHOLS and CHAMPION.
On the gainers’ table, INTENEGINS emerged as the week’s top performer, appreciating by 36.5%. It was followed by MCNICHOLS (+19.9%), AIRTELAFRICA (+10.0%), SKYAVN (+9.9%), and LIVINGTRUST (+5.3%), with gains largely driven by renewed investor interest in selected mid- and small-cap equities.
Conversely, TRANSEXPR led the losers, declining by 23.8%, followed by ACADEMY (-17.3%), CONHALLPLC (-16.2%), NEIMETH (-16.2%), and REGALINS (-15.8%). These losses were primarily driven by profit-taking and persistent sell-side pressure across affected counters.
Overall, the week’s performance reflects a softer market environment, characterised by broad-based declines, weaker trading activity, and cautious investor sentiment, Cowry Asset Management Limited said.
“While buying interest remained evident in a handful of banking and mid-cap stocks, persistent profit-taking across most sectors continued to weigh on overall market performance.
“We expect the Nigerian equities market to remain broadly cautious in the near term as investors continue to assess prevailing macroeconomic conditions and recent market gains”.
The investment firm said profit-taking may persist in stocks that have recorded strong year-to-date returns, while bargain hunting is likely to emerge in fundamentally sound counters with attractive valuations. Rates Top 20% as CBN Sells N2.7trn in OMO Bills to Investors
