NGX Market Update: Market Capitalisation Sheds N5.6 Trillion as Trading Value Climbs 22% Amid Bearish Pressure

The Nigerian equities market closed the week on a mixed but tense note as the market capitalisation of the Nigerian Exchange Nigerian Exchange Group (NGX) shed about N5.63 trillion, even as trading activity told a more optimistic story. Investors exchanged 3.07 billion shares worth N254.61 billion in 287,157 deals, reflecting a 22.7% rise in transaction value despite a sharp 38.1% drop in trading volume compared to the previous week. The divergence highlights a market where fewer shares changed hands, but at significantly higher prices.

Market sentiment remained largely bearish as the NGX All-Share Index (ASI) dropped by 3.59%, closing at 235,941.27 points, down from the previous week’s 244,740.68. This decline pushed overall market capitalisation down to N151.32 trillion, reinforcing concerns about sustained selling pressure and weakening investor confidence in key equities across the board.

Sector performance showed clear dominance from financial stocks, which continued to drive most of the activity on the exchange. The financial services industry alone accounted for 2.07 billion shares valued at N64.49 billion, contributing 67.44% of total traded volume. This underscores the central role of banks and financial institutions in shaping market direction during the week.

Leading the activity chart were Access Holdings Plc, Sterling Financial Holdings Company Plc, and Jaiz Bank Plc, which collectively traded over 819 million shares. Together, they accounted for more than a quarter of total market volume, signaling strong investor focus on financial stocks despite the broader market downturn.

On the performance board, winners included Conoil Plc, which gained 8.25%, alongside insurance and consumer-related stocks, while notable losers such as First HoldCo Plc, International Energy Insurance Plc, and Nigerian Aviation Handling Company (NAHCO) Plc recorded steep declines. As the week closed, the market painted a split picture—rising transaction value on one hand, but persistent capital erosion on the other, leaving investors cautious heading into the next trading session.

source: The Cable