Investors suffered a significant loss of ₦847 billion in the Nigerian stock market last week, primarily due to the negative effects of profit-taking and selloffs on the Nigerian Exchange Limited (NGX).
As a result, the NGX market capitalization, which measures the total value of investments on the Exchange, declined to ₦55.131 trillion from ₦55.978 trillion the previous week.
Similarly, the NGX All Share Index (ASI), another key market indicator, dropped by 1.5%, closing on Friday at 97,100.31 points, down from 98,592.12 points the week before.
The widespread profit-taking across major market sectors contributed to the decline, creating opportunities for market participants to acquire value stocks at discounted prices.
Meanwhile, several companies continued to notify the Exchange of their upcoming Annual General Meetings. FBN Holdings was the latest to announce, while Airtel Africa provided updates on its ongoing share buyback program.
In light of the market’s performance, analysts advised investors to focus on companies with consistent dividend payments, strong fundamentals, and growth potential, which are likely to drive earnings growth in any market cycle.
Market analysis showed that Month-to-Date (MtD) and Year-to-Date (YtD) returns moderated to -0.7% and +29.9%, respectively.
Additionally, trading activity levels fluctuated, with trading volume and value declining by 24.1% and 1.4% week-on-week, respectively.
Sectoral performance was mixed, with gains in the Oil & Gas Index (+5.3%), Insurance Index (+0.8%), and Consumer Goods Index (+0.4%), while the Industrial Goods Index and Banking Index recorded losses of 5.2% and 2.3%, respectively.
Looking ahead, analysts at Cordros Research indicated that they expect bearish sentiments to continue dominating the market as investors remain cautious and exhibit a weak appetite for equities.
They also noted that macroeconomic developments and corporate actions in the upcoming earnings season will likely influence investor sentiment in the near term.
