The Nigerian equities market closed on November cautiously, with the NGX All-Share Index (ASI) dipping by 0.33% to 97,506.87 points despite a year-to-date gain of 30.40%. Subdued investor sentiment overshadowed an increase in trading activity, driven by a mix of profit-taking, sectoral rotation, and macroeconomic uncertainties. Contributing to the cautious outlook was the Monetary Policy Committee’s (MPC) decision to raise the Monetary Policy Rate (MPR) by 25 basis points amid persistently high inflation of 33.88% in October. Additionally, Q3 GDP data revealed modest growth of 3.46%, largely supported by the non-oil sector.
Trading surged with weekly equity turnover hitting 3.19 billion shares valued at ₦54.85 billion, representing a significant increase in volume and value despite fewer deals. The Financial Services sector led activity with 47.25% of total volume, while the Construction Real Estate, and Oil and Gas sectors followed. Sectoral performance was mixed; the NGX Insurance Index gained 1.23%, but indices for Oil & Gas, Consumer Goods, and Banking recorded declines, reflecting sell-offs in key stocks.
Looking forward, analysts predict a challenging December for investors, balancing inflationary pressures, policy shifts, and seasonal trends like the “Santa rally.” Although technical indicators suggest a tentative recovery, persistent selling pressure highlights underlying market fragility. Meanwhile, bond trading showed robust activity, while Exchange-Traded Products (ETPs) saw a decline. Market players remain cautiously optimistic as 2024 draws to a close, with liquidity and investor sentiment poised to shape outcomes in the final weeks.
