The Nigerian Exchange (NGX) faced a decline of N185 billion in market capitalization last week, as profit-taking activities weighed on the equities market. The All Share Index (ASI) fell by 0.33%, ending the week at 97,506.87 points, as bearish sentiment dominated three out of five trading sessions.
November closed with a 0.15% loss in the equities market, as investors balanced profit-taking, sector rotation, and cautious optimism, according to a note by Cowry Asset Limited.
The NGX All-Share Index recorded a weekly dip of 0.33%, mirroring subdued investor confidence. Market capitalization shrank to N59.11 trillion, reflecting a loss of N184.73 billion. However, year-to-date performance remained robust, with the ASI delivering a 30.40% return, while market capitalization surged by 44.5%, bolstered by new listings.
Market Breadth and Trading Activity
Market breadth turned negative with a ratio of 1.45x, as 32 stocks advanced against 46 decliners, signaling widespread sell-offs. Despite this, trading volumes rose by 63.6% to 3.19 billion shares, while the value of transactions jumped 52.9% to N54.85 billion, indicating increased high-value trades. However, the total number of deals declined by 7.09% to 45,112, pointing to selective trading activity.
Sectoral and Stock Performance
Sectoral indices showed mixed results. The NGX Oil & Gas index dropped 1.93%, while the Consumer Goods and Banking indices fell by 0.38% and 0.28%, respectively, driven by sell-offs in stocks like SEPLAT, ETERNA, NIGERIAN BREWERIES, and GTCO.
In contrast, the NGX Insurance index led the gainers with a 1.23% rise, supported by interest in SUNU ASSURANCE and SOVRENINS. The NGX Industrial Goods index followed, climbing 0.62% due to gains in LAFARGE and UPDCREIT.
Notable gainers for the week included SUNU ASSURANCE (+23%), HALDANE MCCALL (+22%), and SOVEREIGN INSURANCE (+16%). On the downside, AUSTINLAZ led the losers with a 26% decline, followed by LASACO (-17%), ETERNA (-16%), and DEAP CAPITAL (-10%).
Looking ahead, Cowry Asset Limited anticipates mixed sentiments as the year closes, with the possibility of a “Santa rally,” a seasonal increase in market activity driven by liquidity and end-of-year optimism.
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