Stock Market Loses N1.889trn In 5 Trading Days

The domestic equities market closed the week on a negative note, as losses in BUA Foods Plc and 58 others dragged the overall capitalization lower by N1.889 trillion.

The market traded bearish for the most part of the week as four out of five trading sessions recorded negative returns.

Precisely, the Nigerian Exchange (NGX) All Share Index (ASI) lost 1.14 per cent week-on-week (WoW) to close at 242,770.94 points while the market capitalization shed N1.889 trillion to close the week at N 156.624 trillion.

Sell pressures in BUA Foods, MTN Nigeria Communications (MTNN) and HBM Nigeria were the main drivers for the week’s bearish outing. Year-to-date, the market’s performance trimmed to 56.01 per cent.

The breadth of the sell-off also remained weak, as 59 stocks declined against 26 gainers, signalling that the negative sentiment was relatively broad-based rather than concentrated in a few large-cap counters.

Trans-Nationwide Express led the gainers table by 32.09 per cent to close at N2.84, per share. International Energy Insurance followed with a gain of 31.68 per cent to close at N5.32, while Sovereign Trust Insurance went up by 13.77 per cent to close to N1.90, per share.

On the other side, AVA Capital led the decliners table by 34.55 per cent to close at N7.20, per share. Unilever Nigeria followed with a loss of 18.94 per cent to close at N118.30, while Zichis Agro Allied Industries declined by 15.08 per cent to close at N18.30, per share.

Overall, a total turnover of 12.153 billion shares worth N176.058 billion in 224,146 deals was traded this week by investors on the floor of the Exchange, in contrast to a total of 5.359 billion shares valued at N139.053 billion that exchanged hands last week in 261,869 deals.

On market outlook for next week, Cordros Securities Limited said, “we expect market activity to be shaped by the remaining H1 2026 earnings releases, particularly across the banking sector, where prospective dividend declarations could drive stock-specific positioning.”

It noted that “beyond earnings, investor sentiment could also be influenced by developments surrounding FTSE Russell’s final decision on Nigeria’s potential reclassification to Frontier Market status, following the earlier suspension due to the market moving to a shorter settlement cycle.”

“We note ongoing between stakeholders which included an announcement during the week that foreign investors would not be required to pre-fund for trades, addressing the key concern around accessibility.

“Meanwhile, the revised NGX pricing methodology, which takes effect on August 17, could introduce some near-term volatility to market activities. Overall, we expect the market to trade cautiously as investors weigh near-term headwinds and tailwinds,” Cordros stated.