The Nigerian stock market closed last week on a bearish note as the Nigerian Exchange Limited (NGX) recorded one of its steepest weekly declines in recent months.
Data from the Exchange showed that investors lost a staggering N2.29 trillion in market value, reflecting heightened selling pressure across key sectors and dampened investor confidence.
The All-Share Index (ASI), which serves as a benchmark for overall market performance, depreciated by 2.51%, closing at 141,004.14 points. Market capitalization followed suit, dropping to N89.209 trillion, down from N91.5 trillion the previous week.
Market turnover also shrank significantly during the review week. Investors exchanged 4.77 billion shares worth N107.43 billion in 152,965 deals, a steep decline from 8.56 billion shares valued at N99.93 billion in 177,870 deals the prior week.
The Financial Services sector dominated trading activity, accounting for 78.24% of total volume and 56.44% of total value.
In total, 3.73 billion shares valued at N60.63 billion were traded across 72,977 deals.
The Consumer Goods sector followed with 370.40 million shares worth N14.02 billion, while the Services sector recorded 176.29 million shares valued at N1.28 billion.
Notably, Universal Insurance Plc, Zenith Bank Plc, and FCMB Group Plc emerged as the top three equities by volume, collectively contributing 1.20 billion shares worth N29.43 billion, or 25.16% of total equity turnover.
The NGX Bond Market also witnessed a slight increase in activity.
A total of 396,920 units worth N39.03 million were traded in 365 deals, compared with 216,055 units worth N27.03 million exchanged in 352 deals the previous week.
Despite the bearish market, 43 equities appreciated in price, although this was lower than the 50 recorded the week before.
Meanwhile, 45 equities declined, up from 49 in the previous week, while 49 remained unchanged.
Top gainers included:
Austin Laz & Co Plc (+20.83%) closing at N2.90
NCR Nigeria Plc (+20.69%) closing at N10.50
Nigerian Enamelware Plc (+19.45%) closing at N39.00
Guinea Insurance Plc (+18.79%) closing at N1.77
Champion Breweries Plc (+10.91%) closing at N18.80
On the flip side, the biggest losers were:
Thomas Wyatt Nigeria Plc (-18.92%) closing at N3.00
NEM Insurance Plc (-18.15%) closing at N26.60
Stanbic IBTC Holdings Plc (-15.39%) closing at N94.00
Lasaco Assurance Plc (-14.57%) closing at N3.46
The Initiates Plc (-10.22%) closing at N12.30
Analysts at Afrinvest Consulting noted that the market is likely to maintain a mixed trajectory with a bearish tilt in the coming week.
The outlook is being shaped by a combination of factors including interim dividend declarations for the first half of the year, sustained pressure on blue-chip stocks, weak macroeconomic indicators, and the absence of strong positive catalysts to stimulate investor interest.
“The market sentiment remains cautious. While some opportunities exist in undervalued stocks, we expect a generally tepid performance until new policy directions or fiscal measures restore confidence,” Afrinvest stated in its weekly market review.
The N2.29 trillion loss underscores the fragile state of the equities market amid economic uncertainty, high interest rates, and foreign exchange volatility.
Analysts have urged investors to adopt a cautious strategy, diversifying portfolios while keeping an eye on defensive stocks in the consumer goods and telecoms sectors, which showed some resilience during the downturn.