Market Blues: Investors Lose N713bn in One Week as Rally Stalls
After several weeks of strong momentum, the Nigerian equities market finally hit the brakes last week, wiping out ₦713 billion in investor wealth as selloffs swept across key sectors.
Key Highlights
Market Performance
• NGX All-Share Index (ASI): Fell by 0.8% week-on-week, closing at 144,628.2 points (down from 145,754.91 points).
• Market Capitalisation: Dropped by ₦713bn to settle at ₦91.5 trillion.
• Year-to-Date (YTD) Return: Slowed to 40.52%, reflecting mounting pressure on equities.
Sector Breakdown
• Oil & Gas: Biggest loser, down 1.42% due to heavy sell pressure in mid- and large-cap counters.
• Industrial Goods: Declined 0.83% on weakness in heavyweight stocks.
• Consumer Goods: Shed 0.94% as investors locked in profits.
• Banking: Slipped 0.23%, reflecting cautious positioning ahead of more earnings reports.
• Commodities: Down 0.03% on mild profit-taking.
• Insurance : The lone bright spot, jumping 8.21% on strong investor confidence following the signing of the Nigerian Insurance Act into law.
Trading Activity
• Volume: Down by 1.73% to 8.56 billion units.
• Value: Dropped sharply by 25.39% to ₦100 billion (vs ₦134 billion the previous week).
• Market Breadth: Surprisingly positive — 66 gainers vs 41 losers, showing retail activity in mid- and small-cap stocks helped cushion the blow from institutional selloffs.
Macro & Investor Sentiment
• Inflation: July CPI showed a moderation to 21.88% y/y, but this didn’t spark fresh buying appetite.
• Profit-Taking: Institutional investors cashed out of heavyweight stocks after the long rally.
• Insurance Frenzy: NIIRA reforms continue to attract both local and foreign investors, fueling expectations of growth in a historically underperforming sector.
Analysts’ Outlook
• Cowry Asset Management: Market sentiment likely to remain weak in the near term as profit-taking persists; however, bargain-hunting in fundamentally strong stocks could provide pockets of opportunity.
• Cordros Capital: Expect continued pressure, especially in weak counters, but value investors may seize short-term price corrections to build medium- and long-term positions.
⚠️ Bottom Line
The ₦713bn loss is a reminder that market pullbacks are part of the cycle. While big names dragged the index lower, insurance stocks stole the spotlight with impressive gains. For discerning investors, these dips could be windows to accumulate value-driven plays before the next leg up.
After several weeks of strong momentum, the Nigerian equities market finally hit the brakes last week, wiping out ₦713 billion in investor wealth as selloffs swept across key sectors.
Key Highlights
Market Performance
• NGX All-Share Index (ASI): Fell by 0.8% week-on-week, closing at 144,628.2 points (down from 145,754.91 points).
• Market Capitalisation: Dropped by ₦713bn to settle at ₦91.5 trillion.
• Year-to-Date (YTD) Return: Slowed to 40.52%, reflecting mounting pressure on equities.
Sector Breakdown
• Oil & Gas: Biggest loser, down 1.42% due to heavy sell pressure in mid- and large-cap counters.
• Industrial Goods: Declined 0.83% on weakness in heavyweight stocks.
• Consumer Goods: Shed 0.94% as investors locked in profits.
• Banking: Slipped 0.23%, reflecting cautious positioning ahead of more earnings reports.
• Commodities: Down 0.03% on mild profit-taking.
• Insurance : The lone bright spot, jumping 8.21% on strong investor confidence following the signing of the Nigerian Insurance Act into law.
Trading Activity
• Volume: Down by 1.73% to 8.56 billion units.
• Value: Dropped sharply by 25.39% to ₦100 billion (vs ₦134 billion the previous week).
• Market Breadth: Surprisingly positive — 66 gainers vs 41 losers, showing retail activity in mid- and small-cap stocks helped cushion the blow from institutional selloffs.
Macro & Investor Sentiment
• Inflation: July CPI showed a moderation to 21.88% y/y, but this didn’t spark fresh buying appetite.
• Profit-Taking: Institutional investors cashed out of heavyweight stocks after the long rally.
• Insurance Frenzy: NIIRA reforms continue to attract both local and foreign investors, fueling expectations of growth in a historically underperforming sector.
Analysts’ Outlook
• Cowry Asset Management: Market sentiment likely to remain weak in the near term as profit-taking persists; however, bargain-hunting in fundamentally strong stocks could provide pockets of opportunity.
• Cordros Capital: Expect continued pressure, especially in weak counters, but value investors may seize short-term price corrections to build medium- and long-term positions.
⚠️ Bottom Line
The ₦713bn loss is a reminder that market pullbacks are part of the cycle. While big names dragged the index lower, insurance stocks stole the spotlight with impressive gains. For discerning investors, these dips could be windows to accumulate value-driven plays before the next leg up.