The Nigerian Exchange Limited (NGX) extended its losing streak last week as investors’ wealth dropped by ₦823 billion amid waning appetite for equities. The All-Share Index (ASI) fell by 0.94 per cent, closing at 138,980.01 points compared to 140,295.49 points in the previous week. This decline highlights persistent negative sentiment, driven largely by macroeconomic headwinds and risk-off positioning in the market.
Market capitalisation also dipped, sliding from ₦88.77 trillion to ₦87.94 trillion, pushing the year-to-date return down to 35.03 per cent. Trading activity slowed as deals fell by 17.43 per cent to 117,791, while the volume of shares traded slipped by 2.66 per cent to 3.11 billion units. However, turnover surprisingly rose by 5.53 per cent to ₦90.2 billion, showing that investors concentrated on high-value stocks despite weaker overall participation.
Sectoral performance was largely negative, with five of six indices closing in the red. The industrial goods index led the downturn, losing 2.08 per cent, followed by the banking index at 1.52 per cent. Consumer goods, oil & gas, and insurance sectors also posted losses of 1.18 per cent, 0.77 per cent, and 0.36 per cent respectively. The commodity index provided the only glimmer of hope with a marginal gain of 0.04 per cent.
Stock-level performance mirrored the market’s weak mood, with only a few bright spots. Sovereign Trust Insurance gained 14.2 per cent, NSLTECH rose by 12.9 per cent, Cornerstone Insurance added 12.4 per cent, while NCR and SCOA both advanced by 10 per cent. On the flip side, DAAR Communications fell by 21.1 per cent, UPDC dropped 13.8 per cent, AIICO Insurance declined by 13.6 per cent, and both Champion Breweries and PZ Cussons shed 13.3 per cent.
Looking ahead, analysts expect caution to persist. Cowry Asset Management and Cordros Capital projected that inflationary pressures, currency volatility, and uncertainty around monetary policy will keep investors on the sidelines in the near term. While bargain hunting in undervalued stocks could spark limited rebounds, experts advised investors to remain selective, focusing on fundamentally strong equities and long-term value.
Source: The Guardian