The Nigerian Exchange (NGX) witnessed a decline of N365 billion in market capitalization last week as negative investor sentiment persisted. This marked the third consecutive week of losses, bringing the market to a four-week low due to sell pressure across key indexes.
Major stocks were affected by the downturn, with MTN Nigeria losing 4.22% of its market value. OANDO also saw a significant drop of 7.14%, while UBA declined by 3.56%.
The market remained volatile as investors reacted to corporate earnings reports and upcoming economic indicators. The NGX All-Share Index fell by 0.55% week-on-week to 105,955.13 points, reflecting portfolio rebalancing strategies ahead of the release of February’s inflation data.
Similarly, market capitalization dipped by 0.55%, settling at N66.35 trillion. Trading volumes remained below average, contributing to weak market breadth.
Despite the downturn, trading activity remained robust. Weekly trading volume surged by 80.45% to 3.28 billion units, as investors targeted penny stocks with strong fundamentals. According to Cowry Asset Limited, the total value of traded stocks rose by 34.49% to N63.52 billion from the previous week’s N47.23 billion. However, the number of trades declined by 5.36% to 60,782.
Sectoral performance was mixed, with three sectors posting gains while three recorded losses. The insurance sector led the gainers, rising by 0.89% due to price increases in ROYALEX, CORNERST, and LINKASSURE. The consumer goods and commodities indices saw marginal gains of 0.03% and 0.02%, respectively, driven by LIVESTOCK, FTNCOCOA, INTBREW, and OKOMUOIL.
On the downside, the oil and gas sector was the worst performer, declining by 1.15% due to sell-offs in CONOIL, OANDO, and TOTAL. The banking and industrial indices also posted losses of 0.45% and 0.21%, respectively, as investors offloaded shares in BERGERPAINTS, JAIZBANK, RTBRISCOE, UBA, and FIRSTHOLDCO.
Among the top-performing stocks for the week, LIVESTOCK FEEDS led with a 22.2% gain, followed by CAVERTON (+15.4%), FTN COCOA (+14.2%), CWG (+13.2%), and TANTALIZER (+13.1%). Conversely, NEIMETH, MECURE, INTENEGINS, CONOIL, and UPL emerged as the worst-performing stocks, shedding between 10% and 17% of their value.
Analysts at Cowry Asset Limited noted that market challenges persist as global economic conditions and trade policies influence local sentiment.
Looking ahead, market corrections are expected as stocks enter an overbought region. Stockbrokers anticipate continued profit-taking, portfolio reshuffling, and bargain-hunting as investors digest Q1 earnings forecasts. Additionally, the release of the Consumer Price Index (CPI) report for February 2025 will play a key role in determining market direction as investors assess its implications on their portfolios.
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