NGX Sheds Nearly N2 Trillion in Market Value as Profit-Taking Weighs on Equities

Sellers dominated the Nigerian Exchange (NGX) last week, wiping nearly N2 trillion off market capitalisation as broad-based profit-taking reversed the previous week’s rally and left only nine stocks in positive territory.

The NGX All-Share Index (ASI) declined 1.60 percent from 246,992.44 to 243,052.74 points, while equity market capitalisation fell from approximately N159.559 trillion to N157.587 trillion, representing a loss of about N1.97 trillion over the five trading sessions.

Weekly Market Summary

The decline was accompanied by a sharp deterioration in market breadth.

Only nine equities recorded price gains during the week, down from 56 in the previous week, while 80 stocks closed lower compared with 35 a week earlier. Another 58 equities finished unchanged.

The weakness extended across most major sectors of the market.

The NGX Insurance Index posted the steepest decline, falling 5.52 percent, followed by the NGX Banking Index, which lost 4.07 percent.

The Industrial Goods Index declined 3.36 percent, while the Consumer Goods Index shed 2.55 percent, reflecting broad selling pressure across the market.

The Oil & Gas Index was one of the few bright spots, advancing 2.83 percent during the week. NGX AFR Dividend Yield, NGX MERI Value, NGX Sovereign Bond and NGX Commodity indices also closed higher, although their gains were insufficient to offset weakness across the broader market.

Despite the decline in share prices, trading activity remained concentrated in financial stocks.

The Financial Services Industry accounted for 2.909 billion shares valued at N56.67 billion, representing 79.76 percent of total equity trading volume and 43.54 percent of total market value. The Services Industry ranked second, while the Consumer Goods Industry placed third.

Liquidity was heavily concentrated in a handful of stocks.

Fortis Global Insurance Plc, Mutual Benefits Assurance Plc and Sterling Financial Holdings Company Plc accounted for 1.544 billion shares worth N4.07 billion, contributing 42.33 percent of total market volume but only 3.12 percent of total market value.

The disparity suggests that a significant portion of trading activity was concentrated in relatively low-priced equities rather than high-value transactions.

Among individual stocks, NGX Group Plc emerged as the week’s best performer with a 13.85 percent gain, followed by Ellah Lakes Plc, which appreciated 13.33 percent.

Seplat Energy Plc advanced 10.00 percent, while E-Tranzact International Plc and Ikeja Hotel Plc also finished among the top gainers.

On the losing side, Fortis Global Insurance Plc recorded the steepest decline after shedding 27.50 percent during the week. Critical Minerals Financing Corp Plc, Austin Laz & Company Plc, Omatek Ventures Plc, Royal Exchange Plc and Champion Breweries Plc also posted double-digit losses as selling pressure intensified across the market.

Although the number of executed trades increased by 9.6 percent, the sharp 38.1 percent decline in trading value and the collapse in market breadth indicate that investors committed significantly less capital while continuing to reduce exposure across a wide range of equities.

The combination of only nine gainers, 80 losers, and a N1.97 trillion decline in market capitalisation reflects a week in which sellers maintained firm control of the Nigerian Exchange with buying interest largely confined to a small number of stocks and sectors.