The Nigerian Exchange Limited (NGX) closed last week on a bearish note as negative sentiment continued to dominate trading despite ongoing corporate earnings disclosures and dividend announcements.
Market data showed that 56 equities recorded losses while only 27 posted gains during the week under review.
The market capitalisation dropped by N440.51 billion to settle at N65.71 trillion while the All-Share Index declined by 0.9 percent to 104563.34 points, its lowest in four weeks.
The weak performance showed investor apathy driven by both domestic macroeconomic uncertainties and lingering concerns over the global economic outlook.
Analysts noted that the current earnings season has so far failed to provide the positive surprises required to stimulate buying interest. Most results released have met expectations without delivering the type of growth that could reverse the downward momentum.
Despite the listing of 5.98 billion additional shares of First HoldCo Plc on the NGX daily official list, the market remained subdued. Typically, such listings would be expected to inject value into the bourse but in the current climate they have had little impact on sentiment.
Sectoral indices largely mirrored the broader downturn. The NGX Insurance Index posted the steepest decline, falling by 4.6 percent due to losses in Royal Exchange Cornerstone Insurance and Lasaco.
The Banking Index shed 2.2 percent as profit-taking in Accesscorp and ETI dragged the sector lower.
Consumer goods and oil and gas indices also recorded declines of 0.6 percent and 0.5 percent respectively following losses in May and Baker Eterna PZ Cussons and Oando.
Even the typically resilient industrial goods segment was not spared, dropping 0.3 percent alongside a 0.1 percent fall in the commodities index.
While price declines dominated the market, trading activity increased sharply. Weekly trade volume rose by 76.9 percent to 2.09 billion units, while trade value climbed 83.5 percent to N52.97 billion.
Deal count also rose by over 52 percent,t indicating that while investors remained cautious, bargain hunting in select counters was active.
Stocks such as VFD Group, Union Dicon, ABBEYBDS and FTN Cocoa were among the top gainers for the week, posting gains of 53.9 percent, 31 percent, 29.6 percent and 18.8 percent, respectively.
On the flip side, Royal Exchange Cornerstone Sovereign Trust Lasaco and CAP led the decliners, falling by 20.8 percent, 15.2 percent, 15 percent, 12.8 percent and 11.7 percent, respectively.
Looking ahead, analysts at Cowry Asset Management expect market participants to remain cautious in the near term, with attention focused on macroeconomic indicators like the March inflation data and Q1 GDP figures.
While some technical indicators suggest the market is currently oversold, a sustainable rebound will likely depend on improved clarity in fiscal and monetary policy, stronger earnings performance and progress on inflation and interest rate management.
