The Nigerian Exchange (NGX) ended the week on a subdued note as sustained selling pressure in banking stocks outweighed gains across other sectors. The NGX All-Share Index (ASI) fell by 0.09 per cent week-on-week, closing at 165,370.40 points, even as market capitalisation rose slightly by 0.18 per cent to N106.15 trillion, supported by fresh share listings from Guaranty Trust Holding Company Plc (GTCO) and Presco Plc.
Banking stocks were the main drag on market performance, with the NGX Banking Index dropping 0.63 per cent amid profit-taking following recent price rallies. Investors appeared cautious ahead of upcoming corporate earnings reports, tempering enthusiasm in what is usually the most heavily traded sector. In contrast, the NGX Insurance Index gained 0.81 per cent, while Consumer Goods, Oil & Gas, Industrial Goods, and Commodity sectors recorded modest gains.
Trading activity reflected investor caution, with a total of 3.09 billion shares worth N81.51 billion exchanged in 222,185 deals—down 17.6 per cent in volume and 18.3 per cent in value from the previous week. The Financial Services sector led activity, accounting for nearly half of all shares traded, followed by Services and ICT sectors, highlighting ongoing selective interest in non-bank equities despite broader market softness.
Market breadth leaned negative, as 49 equities declined versus 43 gainers and 55 stocks closing flat. Standout gainers included Zichis Agro Allied Industries Plc (+59.9%) and Omatek Ventures Plc (+49.3%), while Neimeth International Pharmaceuticals Plc (-26.0%) and LivingTrust Mortgage Bank Plc (-21.4%) led losses. Other notable declines in healthcare and consumer stocks pointed to continued selling pressure in specific sectors.
Despite the soft index, market capitalisation rose by about N194 billion during the week, largely due to new equity issuances. GTCO added 125 million ordinary shares at N80.00 per share through a private placement, while Presco listed 166.67 million shares following a rights issue. Analysts say the market remains cautious, with short-term movements likely driven by corporate earnings and dividend expectations, leaving overall sentiment weighed down by bank stock declines.
source: The Sun