Nigeria’s equities market ended the week on a weaker footing as selling pressure across key stocks dragged the benchmark index lower, erasing ₦394 billion from investors’ portfolios.
The Nigerian Exchange (NGX) All-Share Index recorded its first weekly decline in recent weeks, reflecting a shift in market sentiment as profit-taking intensified after sustained rallies. The index closed the week at 165,512.18 points, marking a 0.37 per cent week-on-week drop and signaling growing caution among equity investors.
Market operators noted that the downturn in the index translated directly into a contraction in overall market value. Total market capitalisation declined by 0.37 per cent, settling at ₦105.96 trillion, compared with ₦106.35 trillion recorded in the preceding week.
According to Cowry Asset Limited, the pullback resulted in an estimated ₦394 billion loss in market value, while the market’s year-to-date return eased to 6.36 per cent, following the latest round of sell-offs.
Despite the bearish close, analysts pointed out that market breadth remained moderately positive, suggesting selective buying interest. A total of 57 stocks advanced, compared with 40 decliners, producing a breadth ratio of 1.43x and indicating that bargain hunting persisted in select counters.
Trading activity on the exchange softened over the review period, reflecting investors’ cautious stance. Data from the NGX showed that total deals declined by 9.97 per cent, while traded volume fell by 18.83 per cent and traded value dropped by 23.71 per cent week-on-week.
By the end of the trading week, investors exchanged 3.75 billion shares worth ₦99.9 billion across 237,302 transactions, underscoring subdued participation and sustained sell-side pressure.
Sectoral performance largely mirrored the broader market weakness, as most indices closed in negative territory amid persistent profit-taking. The Oil & Gas and Commodity indices emerged as the only gainers, advancing by 1.36 per cent and 0.79 per cent, respectively. Gains in ARADEL supported the sector, although losses in ETERNA tempered overall upside.
The Consumer Goods sector recorded one of the steepest declines, falling 1.48 per cent, driven by heavy sell-offs in Nigerian Breweries and International Breweries. Similarly, the Banking index shed 1.32 per cent, weighed down by weakness across tier-one and mid-tier stocks, including FIRSTHOLDCO and FIDELITY Bank, as investors locked in profits after recent gains.
In the Insurance segment, the index slipped 0.10 per cent, as declines in WAPIC and GUINEA Insurance outweighed marginal gains in other counters. The Industrial Goods sector recorded the mildest loss of 0.08 per cent, reflecting modest sell-offs in CUTIX and WAPCO, despite a notable performance by TRIPPLEG.
At the stock level, several low- and mid-cap equities posted outsized gains. DEAP Capital Management led the gainers’ chart with a 60.1 per cent surge, followed by SCOA Nigeria (+59.7 per cent), NCR (+46.4 per cent), DAAR Communications (+41.7 per cent), and RT Briscoe (+40.7 per cent), driven largely by aggressive accumulation.
Conversely, ETERNA (-11.9 per cent), NSL Tech (-10.2 per cent), IMG (-9.9 per cent), ALEX (-9.9 per cent), and UPDC (-8.1 per cent) recorded the sharpest declines, reflecting sustained sell pressure.
Looking ahead, Cowry Asset Limited expects the equities market to trade within a narrow range in the near term, as cautious sentiment persists.
“Although the recent correction has trimmed gains achieved earlier in the year, the market’s year-to-date return of 6.36 per cent suggests downside risks may remain limited, particularly for fundamentally sound, dividend-paying stocks,” the firm said.
