Bearish Sentiments Drag Equities Market Down By N713bn In W-o-W

The local equities market snapped its weekly winning streak, closing lower by N713 billion week-on-week for the first time in 12 weeks.

Specifically, the benchmark NGX All-Share Index depreciated by 0.77 per cent week-on-week to close at 144,628.20 points. Also, the market capitalisation dropped by N713 billion to close the week at N91.502 trillion.

The weak performance was driven by bearish sentiments in MTN Nigeria Communications (MTNN), International Breweries and Lafarge Africa.

The market breadth for the week was positive, as 50 equities appreciated in price, 49 equities depreciated in price, and 47 equities remained unchanged. Mutual Benefits Assurance led the gainers table by 31.85 per cent to close at N3.85 per share. Tripple Gee and Company followed with a gain of 30.23 per cent to close at N5.60, while SUNU Assurance went up by 23.80 per cent to close at N6.19 per share.

On the other hand, UPDC led the decliners table by 17.72 per cent to close at N6.50 per share. LivingTrust Mortgage Bank followed with a loss of 16 per cent to close at N4.20, while Berger Paints declined by 14.67 per cent to close at N32.00 per share.

Overall, investors on the exchange floor traded 8.564 billion shares worth N99.936 billion in 177,870 deals last week, compared to 8.736 billion shares valued at N134.577 billion that exchanged hands the previous week in 180,290 deals.

On the market’s performance this week, Cowry Asset Management Limited said, “We anticipate that weak sentiments will persist in the equities market as investors continue to balance profit-taking activities with selective bargain hunting.

The release of July CPI figures is expected to further shape trading mood, while ongoing portfolio reshuffling and sector rotation will likely define market dynamics in the near term.

“As corporate earnings season progresses, as well as the expectations for Bank financials, market players are digesting company results against the backdrop of cautious trading, while positioning for opportunities in fundamentally strong stocks.”

The firm added that “the current wave of sector rotation reflects investors’ preference for value plays, with price corrections creating attractive entry points despite prevailing volatility.

“Thus, we expect intermittent pullbacks to strengthen the market’s upside potential as investors reallocate portfolios in response to domestic economic indicators and global market trends. Accordingly, we advise investors to leverage price corrections and maintain a strategic focus on value-driven opportunities, while keeping an eye on macroeconomic developments that could influence sentiment.”

Afrinvest Limited also stated, ‘ We expect mixed sentiment to dominate trading on the bourse this week, with a bias towards bearish performance.’