The Nigerian Exchange (NGX) suffered a major loss as investors offloaded shares, leading to a market capitalisation decline of over N476 billion. The All-Share Index (ASI) dropped by 1.19%, closing at 106,538.60 points, as panic selling took over the market.
Stockbrokers at Cowry Asset Limited attributed the downturn to a combination of portfolio rebalancing and the impact of global market shocks, particularly influenced by Trump’s tariff announcements. Despite positive corporate earnings reports, investor confidence remained weak, keeping the market in bearish territory.
During the week, the market capitalisation fell by 0.71%, closing at N66.72 trillion. This decline was partly due to additional shares from Ellah Lakes and Fidelity Bank being introduced to the market. Data from the NGX showed that the ASI’s year-to-date (YTD) return dropped to 3.51%.
Investors suffered heavy losses, with their combined wealth shrinking by N476.01 billion over four losing sessions out of five trading days. Market activity was also subdued, as trading volume dipped by 1.62% to 1.82 billion units, and trade value declined sharply by 8.10% to N47.23 billion. However, total deals rose by 1.79% to 64,222 trades, indicating some level of investor engagement.
Sector performance was mostly negative, with five out of six tracked sectors closing in the red. The banking sector led the decline, dropping 2.87%, followed by insurance (-2.33%) and consumer goods (-1.72%). The oil and gas index also fell slightly by 0.19%, while industrial stocks remained nearly unchanged with a marginal 0.01% decline. The only positive sector was the NGX Commodity Index, which gained due to strong performances from Okomu Oil and Aradel Holdings.
Among individual stocks, Tantalizer saw the biggest gain of the week, soaring 36.3%, followed by UHM REIT (+28.6%). Other notable gainers included Livestock Feeds, Learn Africa, and NGX Group, which all recorded double-digit increases.
On the flip side, Eterna experienced the steepest drop, plunging 18.7%, while Transcorp, FCMB, Royal Exchange, and Sovereign Insurance also posted significant losses.
Looking ahead, analysts expect a battle between bullish and bearish sentiments. Investors are eagerly awaiting the release of top-tier banks’ audited financial statements, which could influence market direction. However, the market’s overbought status suggests caution among traders, with smart investors likely targeting fundamentally strong stocks for long-term gains.
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