The Nigerian stock market closed last week on a bearish note, with the Nigerian Exchange (NGX) shedding approximately N964 billion in market capitalization as investors offloaded shares to lock in recent gains.
After several weeks of sustained rallies, the local bourse witnessed a reversal in sentiment across four out of five trading sessions, driven by portfolio rebalancing and mixed corporate earnings, particularly from the banking sector.
According to market data, the All-Share Index (ASI) dropped by 0.98% week-on-week, settling at 154,126.45 points, while total market capitalization fell to N97.83 trillion.
Analysts at Cowry Asset Management Limited attributed the downturn to profit-taking and cautious positioning by investors awaiting the end of the quarter. The firm noted that the NGX currently trades within a short-term corrective channel, with the ASI dipping below its 20-day and 50-day moving averages — a signal of temporary weakness.
However, Cowry Asset observed that the Relative Strength Index (RSI) is approaching the oversold region, suggesting that fundamentally strong blue-chip stocks may soon present attractive entry points for medium-term investors.
Despite the overall market decline, activity levels improved notably. The weekly traded volume rose by 102.7% to 7.49 billion units, while the value traded advanced 12.16% to N145.44 billion. The total number of deals also climbed 7.85% to 159,598 transactions, underscoring selective but active investor participation.
Across sectors, four of six major indices closed lower, including Banking, Consumer Goods, Industrial Goods, and Insurance, all pressured by profit-taking and weak sentiment. Conversely, the Oil & Gas (+0.30%) and Commodity (+0.15%) indices posted modest gains, buoyed by increases in OANDO and OKOMUOIL.
Top gainers for the week included ASO Savings (+56.1%), Julius Berger (+13.3%), OANDO (+11.9%), Berger Paints (+9.3%), and ETI (+8.2%). On the flip side, Omatek (-21.9%), John Holt (-16.9%), Caverton (-16.2%), NAHCO (-15.9%), and eTranzact (-15.3%) led the losers’ chart.
Looking ahead, analysts expect mixed performance driven by reactions to fixed-income yields, fund rotation into safer assets, and corporate earnings updates. Cowry Asset advised investors to focus on “fundamentally sound stocks with strong earnings power” while waiting for clearer macroeconomic catalysts to re-ignite bullish momentum.
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