The Nigerian Exchange Limited (NGX) closed the final trading week of August on a bearish note, recording a massive N439 billion drop in market capitalisation.
The decline, which reflects cautious investor sentiment and profit-taking activities, dragged the All-Share Index (ASI) down by 0.50 per cent to settle at 140,295.50 points.
Figures released by the NGX show that the market capitalisation fell from N89.208 trillion in the previous week to N88.769 trillion, erasing almost half a trillion naira in value.
Analysts say this movement underscores the current volatility in Nigeria’s capital market amid persistent macroeconomic concerns.
The weekly market report revealed a sharp slowdown in trading activities.
Investors exchanged a total of 3.199 billion shares worth N85.399 billion in 142,477 deals, representing a decline compared with 4.773 billion shares valued at N107.426 billion that were traded the week before in 152,965 deals.
The financial services industry maintained its dominance, contributing 68.61 per cent and 49.99 per cent to the total equity turnover volume and value, respectively.
The sector recorded 2.195 billion shares worth N42.689 billion in 66,808 deals.
The consumer goods sector followed with 277.88 million shares worth N9.91 billion in 15,518 deals, while the services industry placed third with 178.99 million shares worth N1.31 billion in 7,580 deals.
Top traded equities by volume were FCMB Group Plc, Champion Breweries Plc, and Access Holdings Plc, which collectively accounted for 778.60 million shares worth N13.15 billion in 11,288 deals.
Despite the bearish trend, some stocks posted impressive gains. On the gainers’ chart, McNichols Plc rose by 18.75 per cent, climbing from N3.20 to N3.80 per share.
NEM Insurance Plc followed with a 17.29 per cent gain, moving from N26.60 to N31.20 per share.
Berger Paints Plc also recorded a strong 15.31 per cent increase, advancing from N32.00 to N36.90 per share.
Other notable gainers included Coronation Insurance Plc (+12.77 per cent), Learn Africa Plc (+11.43 per cent), and NCR Nigeria Plc (+10 per cent).
On the institutional side, SFS Real Estate Investment Trust appreciated by 9.99 per cent, while Julius Berger Plc rose by 9.93 per cent.
On the losers’ table, Secure Electronic Technology Plc led the pack, declining by 22.73 per cent from N1.10 to N0.85 per share.
Guinea Insurance Plc followed with a 19.77 per cent loss, dropping from N1.77 to N1.42 per share.
Lasaco Assurance Plc shed 13.29 per cent to close at N3.00, while University Press Plc and Mutual Benefits Assurance Plc declined by 12.06 per cent and 11.36 per cent respectively.
Daar Communications Plc, Cornerstone Insurance Plc, and Royal Exchange Plc also suffered double-digit losses.
On the Exchange Traded Products (ETP) segment, investors traded 202,506 units valued at N23.78 million in 390 deals, compared with 396,920 units worth N39.03 million exchanged the previous week.
Similarly, the bond segment recorded 80,523 units valued at N74.05 million in 32 deals, a rise in both value and activity from the prior week’s 58,537 units worth N58.77 million.
The week also witnessed significant listings on the NGX.
Chapel Hill Denham Nigeria Infrastructure Debt Fund added 270,382 new units, while Coronation Asset Management Limited listed 87.9 million units of its Series 1 Coronation Infrastructure Fund under a N200 billion issuance programme.
In addition, Industrial & Medical Gases Nigeria Plc commenced the trading of its rights issue of nearly 200 million ordinary shares at N32.00 each, further boosting market liquidity.
The NGX also announced the supplementary listing of additional Federal Government of Nigeria (FGN) bonds, including the 19.30 per cent FGN April 2029 bond and the 19.89 per cent FGN May 2033 bond.
Market experts attribute the bearish run to investors’ cautious approach in the face of inflationary pressures, currency volatility, and tight monetary policies.
According to analysts, many investors opted for profit-taking in stocks that had recorded significant appreciation in previous weeks.
Financial analyst David Adedayo noted that while short-term bearishness may persist, long-term investors should focus on fundamentally strong stocks.
“This is the time to watch consumer goods, telecoms, and banking stocks that have resilient earnings capacity despite macroeconomic headwinds,” he said.
Another capital market observer, Kemi Adeoye, added that bond market activities remain a bright spot.
“With government bond yields attractive, some investors are shifting funds away from equities into fixed-income securities for stability,” she explained.
As Nigeria enters a new trading month, investors will be closely monitoring inflation data, monetary policy directions from the Central Bank of Nigeria, and corporate earnings reports.
Market watchers believe that these factors will determine whether the NGX sustains its bearish trend or stages a recovery.
For now, the N439 billion market value loss highlights the fragility of investor confidence, but it also presents opportunities for bargain hunters seeking undervalued stocks.
