NGX Loses N5.64 Trillion in One Week as Massive Sell-Off Hits Nigerian Equities Market
The Nigerian equities market came under intense pressure last week as investors collectively lost about N5.64 trillion on the Nigerian Exchange Limited (Nigerian Exchange Limited), following a wave of sustained sell-offs that weakened sentiment across key sectors. The downturn has sparked fresh concern among market participants already navigating a volatile trading environment.
The All-Share Index (ASI) dropped by 3.59% week-on-week to close at 235,941.27 points, while market capitalisation fell to N151.33 trillion. Despite the decline, the market’s year-to-date return still stood at 51.62%, reflecting earlier gains that have now been partially eroded by recent profit-taking.
Trading activity showed mixed signals. While total volume traded fell sharply by 38.04%, the value of transactions and number of deals increased by 22.73% and 21.7% respectively. This suggests investors were still active in the market but increasingly selective, shifting portfolios rather than exiting completely. A total of 3.08 billion shares worth N254.79 billion were exchanged across 287,541 deals during the week.
Sector performance painted a largely bearish picture, with almost all major indices closing in the red. Banking stocks led the decline, dropping 10.49%, followed by insurance at 7.22% and industrial goods at 4.11%. Consumer goods, oil and gas, and commodities also recorded losses, reinforcing the broad-based nature of the sell-off across the market.
Despite the downturn, a few stocks managed to post gains, with Royalex rising 13.3% as the week’s top performer, while Enamelwa, Learn Africa, and Neimeth gained 10% each. However, losses were more severe on the downside, with Intenegins plunging 40.4%, highlighting the sharp divergence in investor sentiment. Analysts say the market is likely to remain under pressure in the short term as investors continue profit-taking after earlier rallies, with sentiment now shifting toward caution and capital preservation.
source: The Guardian