The Nigerian stock market experienced a significant downturn last week, with the market capitalisation dropping by N813 billion. This decline was primarily driven by profit-taking in major stocks such as BUA Foods Plc, MTN Nigeria Communication Plc, BUA Cement Plc, and Airtel Africa Plc. The NGX All-Share Index fell by 0.52 per cent week-on-week to close at 250,808.27 basis points.
Despite the decline in the headline index, the underlying market breadth remained positive, with 44 gainers against 37 losers. ABC Transport led the gainers table with a 45.10 per cent increase to close at N7.40 per share. Critical Minerals Financing Corp followed with a gain of 37.73 per cent to close at N4.49, while Livingtrust Mortgage Bank rose by 32.69 per cent to close at N3.45 per share.
On the other side, Sovereign Trust Insurance led the decliners table with a 12.50 per cent decline to close at N2.10 per share. e-Tranzact International followed with a loss of 12.00 per cent to close at N11.00, while Learn Africa declined by 11.05 per cent to close at N7.65 per share. The mixed performance of stocks reflects the cautious sentiment among investors.
A total turnover of 3.166 billion shares worth N155.023 billion in 206,662 deals was traded last week by investors on the floor of the Exchange. This represents a decline from the previous week, when a total of 4.689 billion shares valued at N240.824 billion exchanged hands in 261,198 deals. The Financial Services Industry led the activity chart with 1.944 billion shares valued at N77.733 billion traded in 92,035 deals.
The Investment Industry followed with 409.484 million shares worth N5.400 billion in 1,444 deals, while the ICT Industry pulled a turnover of 231.705 million shares worth N9.606 billion in 24,133 deals. Trading in top equities, including Fidelity Bank, VFD Group, and Access Holdings, accounted for 1.343 billion shares worth N27.580 billion in 15,771 deals.
Analysts expect the Nigerian stock market to remain cautious and volatile this week as investors continue to lock in profits following strong year-to-date gains. Cowry Assets Management Limited noted that the market's positive breadth points to underlying resilience and could encourage selective bargain-hunting, particularly in fundamentally sound counters that have lagged the broader market rally.
The firm's analysts also stated that market direction is likely to be influenced by corporate earnings, evolving macroeconomic conditions, system liquidity, interest-rate expectations, and overall investor sentiment. As a result, investors are expected to remain selective, with a greater preference for stocks offering attractive valuations and resilient earnings.
Key points
- The Nigerian stock market dropped by N813 billion last week amid profit-taking in major stocks.
- The market capitalisation fell to N162.843 trillion, and the NGX All-Share Index dropped by 0.52 per cent.
- Analysts expect the market to remain cautious and volatile this week, with investors likely to focus on stocks with attractive valuations and resilient earnings.
