The Nigerian equities market experienced a significant downturn last week, closing deep in the red as persistent sell-offs gripped key sectors.
Market Plunge: A Weekly Overview
Data from the Nigerian Exchange Limited (NGX) revealed a sharp decline for the trading week ending November 7. The benchmark All-Share Index (ASI) dropped by 2.99 per cent, closing at 149,524.81 points from the previous week's 154,126.46 points. This pushed the index below the crucial 150,000-point psychological mark.
Consequently, market capitalisation was not spared, falling to ₦94.99 trillion from ₦97.8 trillion. This massive sell-off erased a staggering ₦2.81 trillion in investor wealth within a single week.
Trading activity weakened considerably, with total volume and value traded plummeting. Only 3.57 billion shares valued at ₦107.01 billion were exchanged in 146,429 deals. This was a stark contrast to the previous week's activity of 7.47 billion shares worth ₦145.42 billion.
Sectoral Breakdown and Top Movers
The market bled every single day of the week, with the steepest fall occurring on Wednesday when the ASI declined by 1.19 per cent. Losses were widespread, with all major sectoral indices closing in negative territory.
The NGX Insurance Index recorded the heaviest loss, plunging by 7.56 per cent. This was primarily driven by massive sell-offs in Sovereign Trust Insurance, which fell by 28.21 per cent, and International Energy Insurance, which dropped by 17.01 per cent.
The Oil and Gas sector followed with a 4.80 per cent drop, influenced by declines in Oando (-16.75%) and Eternal (-1.39%). The Banking Index was not immune, falling 3.85 per cent as major lenders like Access Holdings (-10.02%), Zenith Bank (-4.76%), and UBA (-0.12%) all closed lower.
Despite the bearish sentiment, some equities managed to post gains. A total of 20 stocks appreciated in value. NCR Nigeria Plc led the gainers with a impressive 20.94 per cent rise to ₦19.35. It was closely followed by Eunisell Interlinked Plc, which gained 20.17 per cent to close at ₦70.90.
On the flip side, 75 stocks declined. Sovereign Trust Insurance Plc was the worst performer, shedding 28.21 per cent of its value to close at ₦2.80. Other significant losers included C&I Leasing (-20.16%) and Skyway Aviation Handling Company (-18.99%).
Corporate Actions and Market Outlook
Amid the downturn, there were notable corporate developments. Airtel Africa Plc declared an interim dividend, while several companies, including Aso Savings and Loans Plc and Veritas Kapital Assurance Plc, released their third-quarter financial statements.
In a significant move, Ellah Lakes Plc secured approval from the Securities and Exchange Commission (SEC) for its massive ₦235 billion public offer.
Analysts suggest the market is currently in a retracement phase. Investors are cautiously awaiting improved liquidity and potential stabilisation, which could be influenced by positive developments such as Nigeria's successful $2.3 billion Eurobond issuance earlier in the month.
