Bears Retain Control As Stocks Lose N2.42trn Amid Weak Trading

Nigeria’s stock market closed lower as bearish sentiment dominated trading, dragging market capitalisation down by N2.422 trillion in five trading days.

The NGX All-Share Index (ASI) shed 1.65 per cent week-on-week (W-o-W) to close at 232,049.02 points. Similarly, the market capitalisation dropped by N2.422 trillion to close the week at N148.905 trillion.

The week’s performance was predominantly driven by losses in Dangote Cement, BUA Cement and Aradel Holdings.

Weak investor participation and sell-offs across key sectors kept buyers on the sidelines, leaving bears in control for the session.

Analysts said, “the week’s performance reflects a softer market environment, characterised by broad-based declines, weaker trading activity, and cautious investor sentiment. While buying interest remained evident in a handful of banking and mid-cap stocks, persistent profit-taking across most sectors continued to weigh on overall market performance.

Market breadth remained firmly in negative territory, with 19 gainers compared to 59 losers. This indicates that losses were widespread across the market, highlighting weak investor appetite and broad-based declines in share prices.

International Energy Insurance led the gainers table by 36.5 per cent to close at N6.43, per share. McNichols followed with a gain of 19.9 per cent to close at N8.15, while Airtel Africa went up by 10 per cent to close to N4,358.80, per share.

On the other side, Trans-Nationwide Express led the decliners table by 23.8 per cent to close at N3.64, per share. Academy Press followed with a loss of 17.3 per cent to close at N6.70, while Consolidated Hallmark Insurance declined by 16.2 per cent to close at N6.10, per share.

Overall, a total turnover of 2.324 billion shares worth N134.486 billion in 249,328 deals was traded this week by investors on the floor of the Exchange, in contrast to a total of 3.075 billion shares valued at N254.614 billion that exchanged hands last week in 287,157 deals.

Speaking on market outlook, Cowry Assets Management Limited said, “we expect the Nigerian equities market to remain broadly cautious in the near term as investors continue to assess prevailing macroeconomic conditions and recent market gains. Profit-taking may persist in stocks that have recorded strong year-to-date returns, while bargain hunting is likely to emerge in fundamentally sound counters with attractive valuations. Consequently, market performance is expected to remain mixed, with stock specific opportunities continuing to drive investor activity.”