NGX Weekly Wrap: Investors Lose ₦823 Billion as Bearish Sentiment Deepens
The Nigerian Exchange Limited (NGX) closed last week on a negative note, with investors’ wealth shrinking by ₦823 billion, as weak appetite for equities and risk-off positioning dominated market activity.
Key Market Highlights
Index & Capitalisation
• All-Share Index (ASI): Fell by 0.94%, from 140,295.49 points to 138,980.01 points.
• Market Capitalisation: Declined from ₦88.77 trillion to ₦87.94 trillion.
• YTD Return: Dropped to 35.03%.
Market Activity
• Deals Executed: 117,791 (↓17.43%).
• Volume Traded: 3.11 billion units (↓2.66%).
• Market Turnover: ₦90.2 billion (↑5.53% → focus on higher-value stocks).
Market Breadth & Sentiment
• Market Breadth: Weak at 0.30x (19 gainers vs. 63 decliners).
• Investor Mood: Dominated by bearish sentiment, reflecting caution and risk aversion.
Sector Performance
• Industrial Goods: -2.08% (biggest loser, driven by mid- to large-cap selloffs).
• Banking: -1.52% (dragged by liquidity issues & high funding costs).
• Consumer Goods: -1.18%.
• Oil & Gas: -0.77%.
• Insurance: -0.36%.
• Commodities: +0.04% (only positive sector, marginal gain).
Top Gainers vs. Losers
Top Gainers:
• Sovereign Trust Insurance (+14.2%)
• NSLTECH (+12.9%)
• Cornerstone Insurance (+12.4%)
• NCR (+10.0%)
• SCOA (+10.0%)
Top Losers:
• DAAR Communications (-21.1%)
• UPDC (-13.8%)
• AIICO Insurance (-13.6%)
• Champion Breweries (-13.3%)
• PZ Cussons (-13.3%)
Analysts’ Outlook
• Cowry Asset Management:
• Market likely to remain subdued due to currency pressures, inflation concerns, and monetary policy uncertainty.
• Bargain hunting in oversold stocks may bring mild recoveries, but broader bearishness persists.
• Cordros Capital:
• Near-term sentiment to remain cautious, with profit-taking expected.
• Medium-term performance will hinge on macroeconomic trends and fixed income yields.
Takeaway for Investors
Despite the bearish trend, analysts advise focusing on fundamentally strong stocks with long-term growth prospects. Selectivity is key — avoid chasing the market, and position only where value is clear.
Summary: The NGX is currently weighed down by macroeconomic headwinds, sector-wide declines, and low investor confidence. However, opportunities still exist for disciplined investors who focus on quality over quantity.
The Nigerian Exchange Limited (NGX) closed last week on a negative note, with investors’ wealth shrinking by ₦823 billion, as weak appetite for equities and risk-off positioning dominated market activity.
Key Market Highlights
Index & Capitalisation
• All-Share Index (ASI): Fell by 0.94%, from 140,295.49 points to 138,980.01 points.
• Market Capitalisation: Declined from ₦88.77 trillion to ₦87.94 trillion.
• YTD Return: Dropped to 35.03%.
Market Activity
• Deals Executed: 117,791 (↓17.43%).
• Volume Traded: 3.11 billion units (↓2.66%).
• Market Turnover: ₦90.2 billion (↑5.53% → focus on higher-value stocks).
Market Breadth & Sentiment
• Market Breadth: Weak at 0.30x (19 gainers vs. 63 decliners).
• Investor Mood: Dominated by bearish sentiment, reflecting caution and risk aversion.
Sector Performance
• Industrial Goods: -2.08% (biggest loser, driven by mid- to large-cap selloffs).
• Banking: -1.52% (dragged by liquidity issues & high funding costs).
• Consumer Goods: -1.18%.
• Oil & Gas: -0.77%.
• Insurance: -0.36%.
• Commodities: +0.04% (only positive sector, marginal gain).
Top Gainers vs. Losers
Top Gainers:
• Sovereign Trust Insurance (+14.2%)
• NSLTECH (+12.9%)
• Cornerstone Insurance (+12.4%)
• NCR (+10.0%)
• SCOA (+10.0%)
Top Losers:
• DAAR Communications (-21.1%)
• UPDC (-13.8%)
• AIICO Insurance (-13.6%)
• Champion Breweries (-13.3%)
• PZ Cussons (-13.3%)
Analysts’ Outlook
• Cowry Asset Management:
• Market likely to remain subdued due to currency pressures, inflation concerns, and monetary policy uncertainty.
• Bargain hunting in oversold stocks may bring mild recoveries, but broader bearishness persists.
• Cordros Capital:
• Near-term sentiment to remain cautious, with profit-taking expected.
• Medium-term performance will hinge on macroeconomic trends and fixed income yields.
Takeaway for Investors
Despite the bearish trend, analysts advise focusing on fundamentally strong stocks with long-term growth prospects. Selectivity is key — avoid chasing the market, and position only where value is clear.
Summary: The NGX is currently weighed down by macroeconomic headwinds, sector-wide declines, and low investor confidence. However, opportunities still exist for disciplined investors who focus on quality over quantity.