The Nigerian Exchange (NGX) closed the week on a weak note as bearish momentum wiped out N128 billion in market value, extending a month-long trend of cautious trading and subdued investor confidence.
Despite the market still holding a near-40% return year-to-date, sustained risk-off sentiment kept sell pressure elevated, dragging major indicators lower as November came to a close. Analysts linked the negative bias to a cocktail of developments, including the disruptive impact of the capital gains tax regime and recent monetary policy tightening.
For most of the week, the equities market struggled to shake off selling activity. The All-Share Index dipped 0.14% week-on-week to settle at 143,519.81 points, marking losses in three out of five sessions as investors continued to unwind positions in response to intensified profit-taking.
Market operators explained that investors were still reacting to the latest interest rate decisions of the Monetary Policy Committee, a shift that typically sparks portfolio adjustment across asset classes. This period of cautious repositioning dragged market capitalisation down by 0.14% to N91.29 trillion, cutting year-to-date gains to 39.44%.
Cowry Asset Management noted in its weekly commentary that overall sentiment remained weak, reflected in a market breadth of 0.38x—only 26 equities appreciated compared to 68 decliners.
At the same time, activity levels painted a more nuanced picture beneath the negative close. Trading volume surged by 56.37%, while the value of transactions rose 9.09%. The number of deals, however, slipped 4.99%, signalling that traders were more selective even as turnover climbed.
By the end of the week, investors had exchanged 4.13 billion units valued at N116 billion across 102,256 deals, revealing that market participation remained strong despite cautious sentiment.
Sectoral performance further showed a mixed landscape. Banking stocks provided some support, rising 0.67% on renewed interest in counters such as JAIZBANK and ACCESSCORP. The Consumer Goods Index also recorded a mild 0.62% gain, driven by recoveries in MCNICHOLS and UNILEVER.
Beyond these isolated advances, however, most sectors closed lower. Industrial Goods stocks were hit hardest, slipping 1.92% as heavyweights like MEYER and BUACEMENT declined. Oil & Gas followed with a 0.81% drop amid selloffs in CONOIL, while the Insurance Index dipped 0.07%, pressured by losses in SUNUASSUR and REGALINS. Commodity-linked counters also weakened by 0.04%, dragged mainly by OANDO.
A few equities nonetheless posted impressive gains. NCR topped the chart with a remarkable 113.5% weekly surge, while IKEJAHOTEL rallied 68.1%. UACN rose 31.5%, PRESTIGE gained 19.4%, and UPL climbed 17.6% as investors accumulated positions in select counters.
On the flip side, the laggards reflected the sharp sell pressure across the board. MEYER shed 18.9%, INTENEGINS fell 17.3%, DEAPCAP declined 16.7%, SUNUASSUR lost 16.6%, and UPDC slipped 15.6%.
Analysts said the equities market currently sits at a crossroads, balancing macroeconomic headwinds such as rising inflation, FX volatility, and high funding costs against budding optimism in fundamentally strong companies.
Cowry Asset noted that some investors are beginning to position ahead of the dividend season expected in Q1 2026, especially in stocks showing strong accumulation and resilient cash flows.
Heading into the new week, market watchers expect trading to remain cautious. Year-end profit-taking is likely to dominate, although oversold and fundamentally undervalued stocks may begin to attract bargain buyers seeking early entry ahead of potential market reversals.
