The Nigerian equities market witnessed a sharp downturn last week, as investors lost approximately N2.29 trillion due to sustained selloffs across major sectors. The All-Share Index (ASI) of the Nigerian Exchange Limited (NGX) fell by 2.51%, shedding 3,624.06 points to close at 141,004.14 on Friday, August 22, 2025, compared to 144,628.20 pointsrecorded the previous week.
Market capitalization declined from N91.499 trillion to N89.209 trillion, signaling bearish sentiment that dominated the trading floor. Data from NGX revealed that 54 equities recorded price losses, up from 49 in the prior week, while only 43 stocks appreciated, compared to 50 previously. Another 49 stocks remained unchanged, underscoring weak investor confidence amid macroeconomic headwinds.
The downturn was largely driven by significant declines in the Banking, Insurance, and Industrial Goods sectors. The NGX Industrial Goods Index led the losers with an 8.42% drop, followed by the Insurance Index at 4.17%, and the Banking Index at 3.48%. The Oil and Gas Index also slipped by 0.84%, while the Consumer Goods Index and Growth Index were the only gainers, advancing by 0.83% and 4.14% respectively.
Investor activity slowed during the week, as trading volume fell to 4.773 billion shares worth N107.426 billion in 152,965 deals, down from 8.564 billion shares valued at N99.936 billion in 177,870 deals the previous week. Despite the volume drop, trade value increased by 8.47%, reflecting higher-value transactions. Universal Insurance Plc, Zenith Bank Plc, and FCMB Group Plc emerged as the most traded stocks, accounting for over 25% of total equity turnover.
Top laggards included Thomas Wyatt Nigeria Plc (-18.92%), NEM Insurance Plc (-18.15%), and Stanbic IBTC Holdings Plc (-15.39%). Analysts at Cowry Asset Management warned that the market could remain under pressure in the near term, citing tight liquidity and weak macroeconomic conditions. However, they noted that selective bargain-hunting in consumer goods stocks may offer some support if no major policy interventions or positive earnings reports emerge.
Source: The sun