The Nigerian Exchange (NGX) closed last week on a bearish note as investors recorded a combined loss of ₦833 billion in a holiday-shortened trading week.
The downturn came as the market reacted to a blend of profit-taking, weaker investor sentiment, and macroeconomic uncertainties.
Trading activities were reduced to four sessions, following the Federal Government’s declaration of Friday, September 5, as a public holiday to commemorate Eid el-Maulud, limiting liquidity and market momentum.
At the end of the week, the All-Share Index (ASI) fell by 0.94%, settling at 138,980.01 basis points, compared with the previous week’s 140,300.26 points.
Likewise, the market capitalisation of listed equities dropped from ₦88.770 trillion to ₦87.937 trillion, reflecting investor losses amounting to ₦833 billion.
Despite the overall dip, year-to-date performance remained strong with a 35.03% gain, driven by sustained interest in blue-chip banking, insurance, and consumer goods stocks.
According to NGX data, all major indices ended lower, except the Growth Index and Commodity Index, which rose marginally by 0.15% and 0.04% respectively. The ASeM Index closed flat.
Market activity showed a turnover of 3.117 billion shares valued at ₦90.295 billion in 118,018 deals.
This was slightly lower compared to 3.199 billion shares worth ₦85.399 billion traded in 142,477 deals in the prior week.
The Financial Services Industry led by volume, accounting for 2.542 billion shares worth ₦30.357 billion in 52,390 deals. This represented 81.55% of total traded volume and 33.62% of value.
The Services Industry followed with 114.61 million shares worth ₦816.38 million in 6,098 deals, while the Consumer Goods Industry ranked third with 105.45 million shares valued at ₦5.49 billion in 13,346 deals.
Top traded equities by volume included Sovereign Trust Insurance Plc, Access Holdings Plc, and Fidelity Bank Plc, which collectively accounted for 1.685 billion shares valued at ₦9.813 billion, representing 54.05% of total equity turnover.
Sovereign Trust Insurance Plc alone dominated with 1.416 billion shares worth ₦4.21 billion exchanged in just 124 deals, reflecting heightened interest in low-priced insurance stocks.
Nigerian Breweries Plc (41.2m shares, ₦2.82bn) and Fidelity Bank Plc (30.6m shares, ₦642.1m) also featured prominently.
Investor sentiment was largely negative, as reflected in the price movement chart.
Only 19 equities appreciated, compared to 32 in the previous week. Meanwhile, 64 equities declined, higher than 57 the prior week, while another 64 closed unchanged.
Top gainers included:
Sovereign Trust Insurance Plc (+14.23%), closing at ₦2.97 per share.
Secure Electronic Technology Plc (+12.94%), at ₦0.96 per share.
Cornerstone Insurance Plc (+12.36%), at ₦7.18 per share.
Other notable gainers were NCR Nigeria Plc, SCOA Nigeria Plc, and Guinea Insurance Plc.
On the flip side, DAAR Communications Plc led the losers with a 21.10% decline to ₦0.86 per share.
UPDC Plc shed 13.85%, closing at ₦5.60, while AIICO Insurance Plc lost 13.61% to ₦3.49.
Major blue-chip decliners included Champion Breweries Plc (-13.29%), PZ Cussons Nigeria Plc (-13.28%), and Lafarge Africa Plc (-13.08%).
Learn Africa Plc, Eterna Plc, and University Press Plc also recorded sharp losses.
Market analysts attributed the losses to profit-taking activities and cautious positioning by investors ahead of economic data releases and policy expectations.
“The shortened trading week meant reduced liquidity and fewer institutional entries. Many investors opted for safe play, while others locked in earlier gains, leading to sell-offs in key equities,” said Olumide Adesina, an independent capital market analyst.
He added that the broader market is still attractive given the robust year-to-date gains, but warned that persistent inflationary pressures and FX volatility could weigh on investor appetite in coming weeks.
Another Lagos-based analyst, Chidinma Uzo, noted that the dominance of insurance and banking stocks in turnover showed that investors are tilting towards relatively safer, dividend-paying companies amid uncertainty.
Despite the losses, experts remain optimistic about the resilience of the NGX.
With renewed regulatory reforms, particularly in banking recapitalisation and insurance sector strengthening, analysts expect medium-term gains.
“Investors should continue to focus on fundamentally sound equities, especially those in banking, consumer goods, and industrial sectors,” Uzo advised.
As the NGX prepares for another full trading week, investor attention will be fixed on macroeconomic indicators, government fiscal updates, and foreign exchange developments, all of which could drive sentiment.