The Nigerian Exchange (NGX) closed the week with heavy losses, wiping out a staggering ₦367 billion in market value as bearish sentiment tightened its grip on equities.
The downturn, which deepened despite earlier year-to-date gains, highlights mounting investor concerns over macroeconomic uncertainty, profit-taking, and cautious trading patterns in the local bourse.
Data from the NGX showed that the All-Share Index (ASI) shed 623.41 points, representing a 0.45% decline, to settle at 138,157.14 points at Wednesday’s close.
For the week, the market recorded a 2.19% decline, while the month-to-date figure slumped 5.25%.
Despite these setbacks, the equities market still maintained a 34.23% year-to-date gain, underscoring that investor appetite had been strong in previous months before sentiment began to shift.
The downturn also reflected in the market capitalisation, which dipped to ₦87.4 trillion, while overall trading turnover stood at ₦19.67 billion across 28,177 deals.
Interestingly, activity improved by 20% in volume and 70% in value compared to the previous session, but the number of executed deals dropped by 10%.
The week was characterised by a sharp contrast between a handful of strong performers and a broader decline across multiple counters.
Top Gainers:
Secure Electronic Technology led the pack, rising 9.09% to close at ₦0.96 per share.
Consolidated Hallmark Holdings climbed 8.53% to ₦4.20.
John Holt gained 7.94% to ₦6.80.
Cadbury Nigeria appreciated by 5.45% to ₦58.00.
Wema Bank grew 5.31% to ₦21.80.
FCMB Group advanced 5.00% to ₦10.50.
Top Losers:
Learn Africa, Legend Internet, and Daar Communications each posted a steep 10% loss, closing at ₦7.02, ₦4.77, and ₦0.90 respectively.
AXA Mansard Insurance dropped 9.95% to ₦14.39.
University Press fell 9.60% to ₦1.13.
Sunu Assurance weakened by 9.57% to ₦5.01.
This heavy imbalance between losers and gainers reinforced the risk-averse trading mood.
By trading volume, Access Holdings topped with 43.03 million units, followed by Fidelity Bank with 40.13 million shares.
Guaranty Trust Holding Company (GTCO) came next at 34.85 million units, while UBA and AIICO Insurance traded 33.43 million and 29.08 million shares, respectively.
By value, Aradel Holdings led with ₦6.46 billion, reflecting strong institutional interest.
It was trailed by GTCO (₦3.16bn), UBA (₦1.54bn), Zenith Bank (₦1.17bn), and Access Holdings (₦1.10bn).
Market analysts attributed the sustained decline to a combination of profit-taking in previously high-performing stocks and cautious investor sentiment.
The uncertainty surrounding Nigeria’s economic direction, particularly inflation, exchange rate instability, and high interest rates, has left many investors wary.
“Investors are in a wait-and-see mode. With macroeconomic policies still evolving and inflationary pressures biting harder, the appetite for risk assets has cooled,” said an investment analyst at Lagos-based Afrinvest Securities.
Another financial expert noted that despite the downturn, long-term investors could view the decline as a strategic buying opportunity, especially in banking and consumer goods stocks that continue to demonstrate resilience.
The NGX’s downturn comes at a critical time for Nigeria’s economy.
The government’s push for reforms, including subsidy removal and exchange rate unification, has heightened market volatility.
While reforms are expected to yield medium to long-term benefits, investors remain cautious in the short term due to rising operational costs and dwindling consumer purchasing power.
For retail investors, the decline underscores the importance of diversification.
Financial advisors are urging them to balance exposure to equities with safer instruments such as government bonds and mutual funds, which provide more stability in turbulent times.
Looking ahead, analysts predict that the NGX may continue to experience volatility in the near term.
Market direction will likely hinge on corporate earnings reports, inflation data, and fiscal policy updates from the federal government.
“Unless there is a strong policy signal that restores investor confidence, we expect bearish sentiments to dominate the market in the short run,” one analyst said.
Nevertheless, the 34.23% year-to-date gain remains a sign that underlying market fundamentals have not completely eroded, offering hope that a rebound could follow once macroeconomic headwinds ease.
