Investors Lose N4.9tn as NGX Rally Slows

By Babatunji Wusu| The Nigerian stock market suffered a major setback last week as investors lost more than N4.915 trillion amid widespread profit-taking across key sectors of the economy.

Data from the Nigerian Exchange Limited (NGX) showed that market capitalisation dropped from N160.508 trillion to N155.593 trillion, reflecting a sharp decline in the value of listed equities. The downturn ended the market’s recent upward momentum as investors moved to lock in gains following months of strong performance.

The benchmark NGX All-Share Index (ASI) also recorded a significant decline, falling by 3.1 per cent week-on-week to close at 242,593.31 points, down from 250,385.47 points recorded in the previous week.

Analysts attributed the negative performance to portfolio rebalancing, valuation concerns and cautious investor sentiment. Selling pressure dominated trading activities across major sectors, including banking, oil and gas, industrial goods, consumer goods and insurance.

Several heavyweight stocks contributed to the market decline. FirstHoldco led the losers with an 11.4 per cent drop, followed by BUA Cement at 10 per cent, Aradel Holdings at 9.5 per cent, MTN Nigeria at 5.5 per cent and WAPCO at 3.5 per cent.

Sectoral performance remained broadly bearish, with the Oil and Gas Index declining by 5.2 per cent, the Industrial Goods Index by 4.4 per cent, the Banking Index by 3.4 per cent, the Insurance Index by 1.9 per cent and the Consumer Goods Index by 0.7 per cent.

Despite the losses, trading activity improved significantly during the week. Trading volume rose by 71.7 per cent, while transaction value increased by 67.9 per cent compared to the previous week.

Market analysts at InvestData Consulting Limited maintained that the long-term outlook for the Nigerian stock market remains positive, citing strong corporate earnings, improving economic conditions and growing investor confidence. However, analysts at Cordros Capital expect trading to remain cautious in the near term as investors await fresh catalysts to drive market direction.