Equities investors lose N2.5trn in four days as sentiment wanes

The Nigerian equities market extended its losing streak for the fourth consecutive session this week, as investors continued to unwind positions across key sectors, leading to a cumulative loss of about N2.5 trillion in market capitalization.

The market, which opened the week at N97.58 trillion, closed on Thursday at N95.32 trillion, reflecting deepening bearish sentiment and sustained profit-taking in large-cap stocks.

The Nigerian Exchange (NGX) All-Share Index (ASI) correspondingly declined by 2.4 percent, from 153,739.11 points on Monday to 150,026.55 points, dragging the Month-to-Date and Year-to-Date returns to -2.7 percent and +45.8 percent, respectively.

Losses in bellwethers such as MTN Nigeria, Zenith Bank, Ecobank Transnational Incorporated, and Access Holdings were pivotal to the week’s downturn.

Analysts attributed the persistent sell-offs to cautious investor sentiment amid portfolio rebalancing and profit-taking following months of strong rallies.

On Thursday at the NGX, market breadth remained weak, with 39 decliners outweighing 14 advancers.

On the performance board, Legend Interior and Champion Breweries topped the losers’ chart, dipping by 9.9 percent and 9.7 percent in share value, respectively, while UAC Property Development Company and First City Monument Bank led the gainers, appreciating by 9.8 percent and 8.0 percent, respectively.

Sectoral performance was largely bearish, as the Banking, Insurance, Oil & Gas, and Consumer Goods indices all recorded losses of 0.56 percent, 0.28 percent, 0.08 percent, and 0.06 percent, respectively. The Industrial Goods Index was the lone bright spot, posting a marginal gain of 0.20 percent, while the Commodity sector closed flat.

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Market activity also weakened significantly, with total trading volume tumbling 44.5 percent to 619.63 million units, while the total value of transactions fell 44.6 percent to N16.50 billion, executed in 24,865 deals. FCMB Group emerged as the most traded stock by volume with 149.99 million units, while Zenith Bank led by value at N2.51 billion.

Market analysts at Cowry Asset said the persistent bearish run underscores waning institutional participation and heightened investor caution amid macroeconomic uncertainties and high-interest-rate conditions.

“Investors are taking profits in high-performing equities and rebalancing toward fixed-income instruments, given attractive yields in the debt market,” they noted.

With four straight days of losses and eroding investor confidence, analysts expect the market to remain under pressure in the near term, barring any positive policy catalysts or major corporate earnings surprises.

NIGERIAN TRIBUNE