Nigerian Equities Market Closes Week on Bearish Note
The Nigerian Exchange (NGX) wrapped up the trading week with notable declines, as investor sentiment turned cautious amid mixed sectoral performances. The market's key indicators pointed to a downward trend, reflecting broader economic pressures and selective profit-taking activities.
Market Indicators Show Consistent Decline
The NGX All-Share Index (ASI) depreciated by 0.39% to close at 165,512.18 points, while market capitalisation fell by 0.37% to settle at N105.959 trillion. This represents a significant contraction from previous levels, indicating sustained selling pressure across multiple sectors.
Most market indices closed lower during the week, with only a few exceptions. The NGX Oil & Gas index gained 1.36%, the NGX Lotus II rose by 0.37%, the NGX Growth index surged 6.27%, and the NGX Commodity index increased by 0.79%. These gains, however, were insufficient to offset the broader market decline.
Trading Activity and Volume Analysis
Investors traded a total turnover of 3.748 billion shares valued at N99.865 billion across 237,179 deals during the week. This represents a noticeable decline compared to the previous week's 4.607 billion shares worth N130.636 billion exchanged in 263,439 deals.
The Financial Services industry dominated market activity by volume, accounting for 46.49% of total equity turnover with 1.742 billion shares valued at N44.893 billion traded in 90,589 deals. The Services industry followed with 707.617 million shares worth N4.379 billion in 18,322 deals, while the ICT industry ranked third with 303.216 million shares valued at N5.932 billion in 24,107 deals.
Trading in the top three equities by volume—Secure Electronic Technology Plc, Tantalizers Plc, and Access Holdings Plc—accounted for 734.086 million shares worth N5.720 billion in 15,726 deals, representing 19.59% of total market volume and 5.73% of total market value.
Market Breadth Weakens Significantly
Market breadth showed considerable weakening during the week, with only 58 equities recording price appreciation compared to 80 in the previous week. Meanwhile, 40 equities depreciated in price, up from 17 previously, while 50 equities remained unchanged, maintaining the same number as the previous week.
Top Performers and Decliners
Top 10 Price Gainers:
- Deap Capital Management & Trust Plc: +60.09%
- SCOA Nigeria Plc: +59.73%
- NCR Nigeria Plc: +46.36%
- Zichis Agro Allied Industries Plc: +44.75%
- Daar Communications Plc: +41.67%
- RT Briscoe Plc: +40.71%
- UH Real Estate Investment Trust: +37.61%
- Learn Africa Plc: +34.62%
- Tripple Gee & Company Plc: +33.21%
- Morison Industries Plc: +32.86%
Top 10 Price Decliners:
- Eterna Plc: -11.92%
- Secure Electronic Technology Plc: -10.19%
- Industrial & Medical Gases Nigeria Plc: -9.95%
- Aluminium Extrusion Industries Plc: -9.95%
- UPDC Plc: -8.06%
- Coronation Insurance Plc: -8.06%
- Nigerian Breweries Plc: -7.78%
- Transnational Corporation Plc: -7.24%
- International Breweries Plc: -7.02%
- Guinea Insurance Plc: -6.72%
Contextual Economic Developments
The market downturn occurred against the backdrop of positive developments in Nigeria's foreign exchange reserves. The Central Bank of Nigeria reported that forex reserves increased by $1.72 million over the weekend, closing at $33.22 billion—the first rise in five months. This development supports the CBN's ongoing efforts to stabilize the naira and provide liquidity to the foreign exchange market.
Market analysts suggest that while the overall trend was bearish, the selective gains in specific sectors indicate ongoing investor interest in growth-oriented and commodity-based companies. The significant declines in trading volume and value compared to the previous week point to reduced market participation and cautious investor behavior.
