Stock Market Drops by N395bn as Investors Intensify Profit-taking
Kayode Tokede
The Nigerian stock market last week recorded its first weekly negative performance, extending its losing streak as investor sentiment weakened following several sessions of intensified profit-taking.
The Nigerian Exchange Limited All-Share Index (ASI) closed at 165,512.18 basis points, from 166,129.50 basis points, reflecting a week-on-week decline of 0.37 per cent and underscoring subdued confidence among market participants.
Also, the market capitalisation declined by N395 billion to close the week at N105.959 trillion from N106.354 trillion it opened for trading.
Sector performance reflected the broader market sentiment, as the NGX Consumer Goods index declined by two per cent, NGX Banking index depreciated by 1.3per cent, NGX Industrial Goods index down by 0.1per cent and NGX Insurance index dropped by 0.1per cent, while the NGX Oil & Gas index appreciated by 1.4per cent.
Despite the overall decline, market breadth remained moderately positive as 57 advancing stocks significantly outnumbered 40 decliners, indicating selective bargain hunting. DEAP Capital Management & Trust led the gainers table by 60.09 per cent to close at N7.14, per share. SCOA Nigeria followed with a gain of 59.73 per cent to close at N23.80, while NCR Nigeria went up by 46.36 per cent to close to N188.15, per share.
On the other side, Eterna led the decliners table by 11.92 per cent to close at N28.45, per share. Secure Electronic Technology followed with a loss of 10.19 per cent to close at 97 kobo, while Industrial & Medical Gases Nigeria declined by 9.95 per cent to close at N34.85, per share.
Meanwhile, a total turnover of 3.748 billion shares worth N99.865 billion in 237,179 deals was traded last week by investors on the floor of the Exchange, in contrast to a total of 4.607 billion shares valued at N130.636 billion that exchanged hands prior week in 263,439 deals.
The Financial Services Industry led the activity chart with 1.742 billion shares valued at N44.893 billion traded in 90,589 deals; contributing 46.49 per cent and 44.95 per cent to the total equity turnover volume and value respectively.
The Services Industry followed with 707.617 million shares worth N4.379 billion in 18,322 deals, while the ICT Industry pulled a turnover of 303.216 million shares worth 5.932 billion in 24,107 deals.
Trading in the top equities, Secure Electronic Technology, Tantalizers and Access Holdings accounted for 734.086 million shares worth N5.720 billion in 15,726 deals, contributing 19.59 per cent and 5.73 per cent to the total equity turnover volume and value respectively.
However, the Nigerian stock market is expected to remain range-bound in the near term, as investors exercise caution amidst ongoing profit-taking and soft trading activity.
Despite the recent pullback, the market’s year-to-date return of 6.36 per cent suggests that downside risks may be somewhat contained, particularly for fundamentally strong and dividend-paying stocks.
Analysts predicted limited upside for Nigerian stocks, advising investors to adopt a cautious approach.
Looking ahead, analysts at Cowry Assets Management Limited said, “we expect the Nigerian equities market to remain range-bound in the near term, as cautious investor sentiment persists amid ongoing profit-taking and soft trading activity.
“While the recent pullback has moderated gains accumulated earlier in the year, the market’s year-to-date return of 6.36 per cent suggests that downside risks may be somewhat contained, particularly for fundamentally strong and dividend-paying stocks.”
On market outlook, Futureview Group stated that “we expect investors to trade cautiously, focusing on fundamentally strong stocks with attractive valuations.”
Analysts at Cordros Research added that, “In the coming week, trading is expected to remain choppy as market participants assess a wave of 2025FY earnings releases, driving heightened stock-specific volatility and selective repositioning.”
