Equities investors lose N394bn as NGX post first weekly decline

Nigeria’s stock market recorded its first weekly decline of the year, wiping about N394 billion off investors’ portfolios as profit-taking and sell pressure in heavyweight stocks pushed prices lower.

The Nigerian Exchange All-Share Index fell 0.37 per cent week-on-week, closing at 165,512.18 points, signaling weakening investor confidence after several sessions of sustained selling. Market capitalisation also declined by the same margin, from N106.35 trillion the previous week to N105.96 trillion.

Stockbroking firm Cowry Asset Limited noted that the pullback marked a shift in sentiment following recent rallies, with investors locking in gains amid cautious positioning. The market’s year-to-date return moderated to 6.36 per cent, reflecting the impact of the latest correction.

Despite the overall decline, market breadth remained positive, with 57 stocks gaining against 40 losers, suggesting selective bargain hunting by investors in an otherwise weak market.

Trading activity slowed, reinforcing the cautious mood. Total deals, volume, and value traded fell by 9.97 per cent, 18.83 per cent, and 23.71 per cent, respectively. In total, 3.75 billion shares worth ₦99.9 billion were exchanged in 237,302 deals during the week.

Sectoral performance largely mirrored the bearish trend. Most indices closed in negative territory, with only the Oil & Gas and Commodity indices posting gains of 1.36 per cent and 0.79 per cent, respectively, supported by price appreciation in Aradel Holdings but partly offset by losses in Eterna Plc.

The Consumer Goods sector fell 1.48 per cent, driven by sell-offs in Nigerian Breweries Plc and International Breweries Plc, while the Banking index declined 1.32 per cent as investors trimmed exposure to First HoldCo Plc and Fidelity Bank Plc after recent rallies.

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The Insurance sector slipped 0.10 per cent, weighed down by profit-taking in Wapic Insurance Plc and Guinea Insurance Plc, while the Industrial Goods index posted a mild 0.08 per cent decline despite gains in Tripple G Plc.

At the stock level, Deap Capital Management and Trust Plc topped the gainers’ chart with a 60.1 per cent jump, followed by SCOA Nigeria Plc (59.7 per cent), NCR Nigeria Plc (46.4 per cent), DAAR Communications Plc (41.7 per cent), and RT Briscoe Nigeria Plc (40.7 per cent).

On the losers’ side, Eterna Plc declined 11.9 per cent, NSL Technologies Plc 10.2 per cent, Industrial and Medical Gases Nigeria Plc 9.9 per cent, Alex Industries Plc 9.9 per cent, and UPDC Plc 8.1 per cent, reflecting sustained sell pressure in those stocks.

Looking ahead, Cowry Asset Limited said the market is likely to remain range-bound in the near term as cautious sentiment and profit-taking persist.

“While the recent pullback has moderated gains accumulated earlier in the year, the market’s year-to-date return of 6.36 per cent suggests that downside risks may be contained, particularly for fundamentally strong and dividend-paying stocks,” the firm said.