The Nigerian equities market began the week on a bearish note, as heavy sell-side activity led to a drop in market capitalization and investor wealth on the Nigerian Exchange (NGX). The bourse experienced a sustained decline for the third consecutive trading session, amid what analysts describe as an overbought market condition.
Stockbrokers processed a high volume of sell orders, leading to slight downward movement in key indices. The All-Share Index dipped by 17.19 points, settling at 119,978.57, while the overall market capitalization declined by approximately ₦10.89 billion to close at ₦75.95 trillion.
Despite the broad negative sentiment, market breadth remained marginally positive, with 32 stocks recording gains against 31 decliners. Analysts from Atlass Portfolio Limited noted that investors adopted a cautious approach in the absence of strong economic triggers, resulting in a sentiment-driven market environment.
Profit-taking was particularly evident in medium and large-cap equities in the banking and industrial sectors, which dragged the broader market. Sector-wise, the banking index led the losses with a 1.09% drop, followed by the industrial sector at 0.42% and oil & gas at 0.29%. Conversely, the consumer goods and insurance sectors provided some relief, gaining 0.79% and 0.69% respectively.
Nonetheless, trading activity surged significantly. Data showed that total trade volume skyrocketed by 224.70%, while trade value leaped by 246.87%. Over 2.03 billion units valued at ₦44.34 billion were exchanged in 25,172 transactions.
OANDO topped the volume and value charts, accounting for 26.16% of the total traded volume and 45.91% of total transaction value. Other major contributors included ACCESSCORP, UACN, ELLAHLAKES, and CAVERTON.
CWG emerged as the top gainer with a 10% increase, followed closely by CAVERTON, NEIMETH, FTNCOCOA, and MEYER, all of which recorded gains close to the daily cap. On the losers’ list, LEARNAFRCA posted a full-day loss of 10%, leading the pack of 31 declining stocks, which included JBERGER, LEGENDINT, VFDGROUP, and WAPCO.
While short-term sell-offs have weighed on the market, analysts maintain that underlying fundamentals remain strong. The market outlook remains cautiously optimistic, pending the emergence of significant economic drivers.
