Nigeria’s equities market drops by 1.35% WoW

The benchmark NGX All-Share Index (ASI) declined by 1.35 per cent week-on-week (WoW) to close at 239,351.16 points, while market capitalisation fell by approximately N2.09 trillion to close the week at N154.534 trillion. Consequently, the market’s year-to-date (YTD) return moderated to 53.81 per cent.

Market breadth remained negative, with 18 gainers against 58 losers. The negative breadth reflects cautious investor sentiment, as declining stocks significantly outnumbered advancing counters during the week.

Haldane Mccall led the gainers table by 32.30 per cent to close at N3.85, per share. Trans-Nationwide Express followed with a gain of 16.20 per cent to close at N3.30, while Dangote Sugar Refinery went up by 5.19 per cent to close to N67.90, per share.

On the other side, International Energy Insurance led the decliners table by 27.26 per cent to close at N3.87, per share. Fortis Global Insurance followed with a loss of 23.95 per cent to close at N2.00, while Royal Exchange declined by 18.49 per cent to close at 97 kobo, per share.

Overall, a total turnover of 6.242 billion shares worth N157.764 billion in 186,496 deals was traded last week by investors on the floor of the Exchange, in contrast to a total of 12.153 billion shares valued at N176.058 billion that exchanged hands previous week in 224,146 deals.

The Financial Services Industry led the activity chart with 5.594 billion shares valued at N56.431 billion traded in 82,300 deals; contributing 89.62 per cent and 35.77 per cent to the total equity turnover volume and value respectively. The ICT Industry followed with 143.704 million shares worth N29.793 billion in 23,740 deals, while the Services Industry pulled a turnover of 138.672 million shares worth N1.751 billion in 11,438 deals.

The Financial Services Industry led the activity chart with 5.594 billion shares valued at N56.431 billion traded in 82,300 deals, contributing 89.62 per cent and 35.77 per cent to the total equity turnover volume and value respectively.

The ICT Industry followed with 143.704 million shares worth N29.793 billion in 23,740 deals, while the Services Industry traded a turnover of 138.672 million shares worth N1.751 billion in 11,438 deals.

Trading in the top equities, Fortis Global Insurance, Lasaco Assurance and Consolidated Hallmark Holdings accounted for 4.168 billion shares worth N9.249 billion in 1,660 deals, contributing 66.77 per cent and 5.86 per cent to the total equity turnover volume and value respectively.

Nigeria’s equities market is likely to see muted activity ahead as investors weigh the appeal of high-yielding short-term instruments against stocks, with no clear catalysts to drive renewed risk appetite. 

Analysts noted that the Central Bank of Nigeria’s revised OMO framework may further temper participation, keeping market sentiment cautious in the coming weeks.

They noted that the persistent profit-taking and portfolio reallocation toward higher-yielding fixed-income assets such as commercial papers, bonds, and money market funds continued to weigh heavily on overall sentiment on the equities market.

On market outlook, Cowry Assets Management Limited said, “the Nigerian equities market is expected to remain volatile and cautious in the short term amid continued profit-taking. However, the medium-term outlook remains cautiously positive, supported by strong earnings and attractive valuations, with investors likely to favour fundamentally sound stocks.”

Looking ahead, Cordros Securities Limited said, “we expect market sentiment to remain cautious in the absence of clear near-term catalysts. In addition, the CBN’s revised OMO framework could temper market participation, as attractive short-term fixed-income yields may continue to compete with equities for investor flows.”

The domestic stock market extended its bearish run last week, closing lower in four of the five trading sessions.