NGX Loses 0.84% Despite N404.8 Billion Weekly Turnover as FirstHoldCo Drives Activity

The Nigerian Exchange (NGX) ended the final trading week of July in negative territory as widespread profit-taking outweighed pockets of buying interest, even as transaction value surged above N400 billion following exceptionally heavy activity in First HoldCo and other financial stocks.

The NGX All-Share Index declined by 0.84 percent to 245,283.68 from 247,357.40 in the previous week, reversing part of the 1.60 percent gain recorded a week earlier.

Equity market capitalisation consequently declined to N158.326 trillion, representing a weekly contraction of about N1.26 trillion from the N159.588 trillion recorded at the end of the previous week.

The decline, however, came alongside a substantial increase in market activity.

Investors traded 5.119 billion shares worth N404.762 billion in 285,223 transactions, compared with 4.433 billion shares valued at N306.143 billion in 255,589 deals in the preceding week.

This represents approximately 15.5 percent growth in trading volume and a 32.2 percent increase in transaction value, while the number of deals increased by about 11.6 percent.

The divergence between falling share prices and rising turnover points to significant portfolio repositioning rather than an absence of investor participation.

Financial services remained overwhelmingly responsible for market liquidity, accounting for 3.918 billion shares valued at N271.428 billion across 123,514 transactions.

The sector represented 76.55 percent of total volume and 67.06 percent of total transaction value during the week.

First HoldCo Plc, AVA Capital Plc and Access Holdings Plc alone accounted for 2.308 billion shares valued at N224.773 billion, representing 45.09 percent of total market volume and 55.53 percent of turnover value.

First HoldCo was particularly important to the week’s exceptional turnover following another major acquisition linked to Chairman Olufemi Otedola.

Calvados Global Services Limited, a company related to Otedola, purchased 1.779 billion First HoldCo shares at N124.90 each on July 30, putting the transaction at approximately N222.2 billion.

The acquisition followed another insider transaction on July 22 when Calvados acquired 706.13 million First HoldCo shares at N109.88 per share for approximately N77.6 billion.

Based on First HoldCo’s previously disclosed shareholding structure and the two transactions, Otedola’s beneficial interest has increased from approximately 20.40 percent at June 30 to an estimated 25.85 percent.

The size of the July 30 transaction also explains the unusual spike in market activity that day. NGX data showed 2.102 billion shares worth N230.739 billion traded on Thursday alone, meaning the session accounted for more than half of the entire week’s transaction value.

Outside the large block activity, market sentiment weakened progressively during the week.

The market began Monday with 28 gainers against 32 losers before recovering on Tuesday when 35 equities advanced against 24 decliners.

Selling pressure subsequently intensified. On Wednesday, only 23 stocks advanced while 45 declined, and Thursday recorded just 18 gainers against 44 losers. Sentiment improved on Friday, when 34 stocks appreciated against 29 decliners, but the recovery was insufficient to erase earlier losses.

For the full week, only 33 equities appreciated, down sharply from 57 in the previous week. Meanwhile, 56 equities declined, compared with 38 previously, while 58 remained unchanged.

The deterioration in market breadth reinforces the view that the index decline reflected broader profit-taking following the strong rally recorded earlier in July.

Sector performance also showed a notable change in market leadership.

The NGX Insurance Index gained 1.72 percent, making insurance one of the few segments to withstand the broader selloff. This continued the rotation observed during Tuesday’s session when Lasaco Assurance, Linkage Assurance and SUNU Assurances featured prominently among market gainers.

The NGX Premium Index managed a marginal 0.02 percent increase, while the Sovereign Bond Index advanced 0.27 percent.

Most other major indices declined.

The Banking Index fell 0.69 percent, Consumer Goods lost 2.29 percent, the AFR Bank Value Index declined 2.99 percent, and the MERI Growth Index dropped 4.23 percent.

The NGX Growth Index suffered the steepest sectoral decline, falling 8.82 percent during the week.

Despite the weekly correction, the Nigerian equity market remains substantially higher for the year. The All-Share Index ended July with a year-to-date return of 57.62 percent, while the Banking Index remained up 66.74 percent and the Industrial Goods Index had gained 85.42 percent since the beginning of 2026.

Among individual equities, Critical Minerals Financing Corp led weekly gainers with a 22.78 percent increase to N3.88.

Coronation Infrastructure Fund advanced 20.92 percent to N154.30, Thomas Wyatt gained 20.66 percent to N4.38, Consolidated Hallmark Holdings appreciated 19.60 percent to N8.36, while Lasaco Assurance gained 18.68 percent to N2.16.

At the opposite end, Associated Bus Company recorded the week’s largest decline, losing 18.44 percent to close at N5.75.

Fortis Global Insurance fell 16.13 percent, Tripple Gee declined 15.54 percent, Veritas Kapital Assurance lost 15.38 percent, while International Breweries shed 13.87 percent.

Activity also strengthened outside equities.

Exchange-traded product turnover almost doubled to 4.607 million units, compared with 2.559 million units in the preceding week, while transaction value increased to N549.38 million from N447.34 million.

Bond market activity also expanded, with 305,669 units valued at N311.56 million traded during the week, compared with 189,675 units worth N185.84 million previously.

The week’s performance marks a change from the strong upward momentum recorded earlier in July. After gaining 1.60 percent in the preceding week, investors increasingly locked in profits while continuing to deploy substantial capital into selected financial and insurance stocks.

The surge in turnover therefore masks a considerably weaker underlying market breadth. First HoldCo’s extraordinary block transaction inflated headline liquidity, while the increase in declining stocks and weakness across most sector indices showed that the broader market was undergoing consolidation.

Nevertheless, with the ASI still up 57.62 percent year-to-date and financial services continuing to attract significant capital, the correction appears to reflect profit-taking and portfolio repositioning following July’s strong advance rather than a wholesale withdrawal of investors from Nigerian equities.