The Nigerian stock market closed bearish last week, impacted by a sharp rise in petrol prices, which surged from N600 to between N855 and N1,000 per litre.
This increase, condemned by the private sector for its potential adverse effects on businesses, contributed to market declines.
The Nigerian Exchange Limited (NGX) All-Share Index (ASI) dropped by 0.2%, closing at 96,433.53 points, down from 96,579.54 points the previous week.
Market capitalisation also fell by over N83 billion, ending the week at N55.394 trillion.Profit-taking activities in key stocks such as Dangote Sugar (down 5.5%), Zenith Bank (down 2.0%), and WAPCO (down 3.5%) contributed to the overall market decline.
Despite the bearish trend, the Year-to-Date (YtD) return moderated to +29.0%, though trading volume and value fell by 23.7% and 3.3% week-on-week, respectively.
Sector performance was mixed, with declines in the Insurance Index (-4.5%), Consumer Goods Index (-1.2%), and Industrial Goods Index (-0.2%), while the Oil and Gas Index rose by 1.5%.
Looking ahead, analysts from Cordros Research expect cautious trading and selective buying as market participants seek broader signals of market interest.
InvestData Consulting analysts anticipate mixed sentiment, with opportunities for bargain hunting and portfolio repositioning as investors take advantage of price corrections in response to ongoing volatility and economic events.