Risk-off Sentiment Deepens As Stock Investors Lose N832bn In 1 Week

The Nigerian equities market extended its bearish trajectory last week, as weak sentiment and risk-off positioning dominated trading activity.

The NGX All Share Index (ASI) shed 0.94 per cent week-on-week to close at 138,980.01 points. In tandem, market capitalisation fell by N832 billion to N87.937 trillion, trimming the year-to-date return to 35.03 per cent. The persistent downturn highlights lingering macroeconomic uncertainties that have tempered investors’ appetite for risk assets.

Market breadth remained weak, with only 19 gainers against 63 decliners. Sovereign Trust Insurance led the gainers’ table by 14.23 per cent to close at N2.97 per share. Secure Electronic Technology followed with a gain of 12.94 per cent to close at 96 kobo, while Cornerstone Insurance went up by 12.36 per cent to close at N7.18 per share.

On the other side, DAAR Communications led the decliners table by 21.10 per cent to close at 86 kobo, per share. UPDC followed with a loss of 13.61 per cent to close at N3.49, while AIICO Insurance declined by 13.61 per cent to close at N3.49, per share.

Overall, a total turnover of 3.117 billion shares worth N90.295 billion in 118,018 deals was traded last week by investors on the floor of the Exchange, in contrast to a total of 3.199 billion shares valued at N85.399 billion that exchanged hands previous week in 142,477 deals.

On market’s performance this week, Cowry Asset Management Limited said, “we expect the Nigerian equities market to trade cautiously, with sentiment likely to remain weak amid persistent macroeconomic headwinds such as currency pressures, inflation expectation, and uncertainty around monetary policy direction.

“While bargain-hunting in oversold stocks could trigger mild recoveries in select counters, overall market performance is expected to stay broadly bearish, with investor appetite for risk assets still subdued. The sharp contrast between the few outperformers and the numerous laggards highlights persistent investor caution, as negative sentiment dominates sectoral flows.

We continue to advise investors to take positions in stocks with strong fundamentals.”

United Capital Plc said, “the market may likely turn around as it is already in the oversold position. Investors await the release of H1 2025 results from first-tier banks. This may serve as an additional catalyst for the market.”