Equities Extend Weekly Bearish Run As Investors Lose N439bn

The Nigerian equities market extended its bearish trend last week by N439 billion loss, sustaining the negative momentum carried over from the previous week.

The benchmark NGX All-Share Index (ASI) declined by 0.50 per cent week-on-week to close at 140,295.50 points.

In tandem, market capitalisation fell by N439 billion to close the week at N88.769 trillion, bringing the year-to-date return to 36.31 per cent.

The bearish trend further dampened investor confidence, as evidenced by the weak market breadth, with only 31 gainers against 57 decliners. McNichols led the gainers’ table by 18.75 per cent to close at N3.80 per share. NEM Insurance followed with a gain of 17.29 per cent to close at N31.20, while Berger Paints went up by 15.31 per cent to close at N36.90 per share.

On the other hand, Secure Electronic Technology led the decliners table by 22.73 per cent to close at 85 kobo per share. Guinea Insurance followed with a loss of 19.77 per cent to close at N1.42, while Lasaco Assurance declined by 13.29 per cent to close at N3.00 per share.

Overall, a total turnover of 3.199 billion shares worth N85.399 billion in 142,477 deals was traded last week by investors on the floor of the Exchange, in contrast to a total of 4.773 billion shares valued at N107.426 billion that exchanged hands the previous week in 152,965 deals.

On the market outlook for this week, United Capital Plc stated that “the equity market could be cautiously optimistic, driven by expectations of a potential interest rate cut from the Central Bank of Nigeria due to moderating inflation, alongside a relatively stable Naira and an increase in foreign reserves.”

Cowry Asset Management Limited noted, “We anticipate a mixed performance in the Nigerian equities market, with cautious sentiment likely to dominate amid tight liquidity and lingering macroeconomic pressures. Sell pressure in the Banking and Industrial Goods sectors may persist, while bargain-hunting in oversold counters, particularly within Consumer Goods and Insurance, could drive mild recoveries.

“Overall, the market is expected to trade range-bound with a slight bearish bias, barring any major policy pronouncements or corporate catalysts. However, we continue advising investors to position stocks with strong fundamentals.”

While Afrinvest Limited said “this week, we anticipate a modest rebound on the bourse, driven by strategic cherry-picking following recent price corrections, alongside improved system liquidity from FAAC allocation disbursements.”