The Nigerian equities market experienced a turbulent week, closing deep in the red as investor anxiety over the government's proposed capital gains tax triggered a massive sell-off.
Market Plunge and Midweek Recovery
Bearish sentiment dominated trading, leading to a 1.68 per cent week-on-week decline in the All-Share Index (ASI). The panic reached a climax on Tuesday when the market recorded a landmark five per cent single-day drop, its most severe fall in years, as fears of potential valuation shocks swept across trading floors.
A calmer sentiment returned midweek after the Federal Government indicated it might reconsider the controversial tax proposal. This prompted cautious bargain-hunting from investors, helping the market secure its first positive close for the month of November.
Key Market Metrics and Sector Performance
Despite the brief rebound, the market felt a significant financial impact. Total market capitalisation fell by N1.5 trillion, closing the week at N93.5 trillion. The ASI ended at 147,013.59 points, which trimmed the year-to-date return to 42.83 per cent.
Trading patterns revealed a dramatic shift. While the number of deals dropped by 7.6 per cent, the volume and value of trades surged by 104.87 per cent and 46.17 per cent respectively. This spike reflected heightened institutional block trades, even as activity from retail investors remained subdued.
Sector performance was a mixed bag, leaning mostly positive:
- Insurance stocks led the gainers, rising by 2.42 per cent.
- The banking sector appreciated by 1.26 per cent.
- Consumer goods added 0.46 per cent.
- Oil and gas edged up by a marginal 0.01 per cent.
In contrast, the industrial goods sector tumbled by a hefty 6.97 per cent as investors continued to offload major counters. The commodity index also fell by 2.02 per cent due to broad profit-taking.
Top Gainers and Losers
NCR emerged as the week's strongest performer, skyrocketing by 32.3 per cent on the back of vigorous buying interest. It was closely followed by Aso Savings, which gained 14.4 per cent. Champion, International Energy Insurance, and NSLTECH also recorded solid upticks of 11.5 per cent, 11.5 per cent, and 10.7 per cent respectively.
On the flip side, Union Dicon suffered the sharpest decline, shedding 18.7 per cent. AustinLaz and Multiverse followed closely with drops of 18.6 per cent and 14.5 per cent. Academy Press and Dangote Cement each recorded significant losses of 10 per cent, pressured by intensified profit-taking and weakening sentiment.
Market at a Crossroads
With liquidity increasingly concentrated in institutional trades and sector leadership rotating rapidly, the market appears to be at a critical juncture. Although the ASI remains up 42.58 per cent year-to-date, the underlying tone is decidedly cautious.
As the market heads into a new week, analysts anticipate subdued activity as investors carefully balance year-end profit-taking with evolving macroeconomic signals. The near-term direction will hinge on whether the current rotational flows among investors broaden or begin to taper off.
