Investors Lose N84bn as Nigerian Equities Market Slips Amid Sectoral Declines

Samuel Mobolaji

Investors suffered a significant loss of N84 billion last week as the Nigerian equities market took a downturn.

The All-Share Index (ASI) dropped by 0.15 per cent, closing the week at 96,433.53 points, while market capitalisation declined to N55.394 trillion, reflecting a challenging period for investors with mixed performance across sectors.

The NGX Oil & Gas index emerged as the only positive sector, gaining 1.48 per cent for the week. In contrast, the NGX Banking index fell by 0.23 per cent, and other sectors saw more substantial declines.

The NGX Insurance index lost 4.76 per cent, while the NGX Consumer Goods and NGX Industrial Goods indices declined by 1.18 per cent and 0.13 per cent, respectively.

Market sentiment remained negative, with 46 equities depreciating in value, while 36 recorded gains, and 69 remained unchanged. Industrial & Medical Gases Nigeria led the gainers, rising by 32.58 per cent to close at N35.00 per share. Berger Paints followed with a 31.12 per cent increase, closing at N18.75 per share, while e-Tranzact International rose by 20.59 per cent, ending the week at N6.15 per share.

On the other hand, R T Briscoe led the decliners, dropping by 27.61 per cent to close at N2.57 per share. FTN Cocoa Processors fell by 18.38 per cent to N1.51, and Omatek Ventures declined by 18.18 per cent to 72 kobo per share.

Overall, trading activity decreased this week, with a total turnover of 2.141 billion shares worth N51.217 billion traded in 55,603 deals. This represents a decline compared to the previous week’s 2.821 billion shares valued at N53.048 billion traded in 50,488 deals.

The Financial Services Industry dominated the activity chart, contributing 57.40 per cent of the total equity turnover, with 1.229 billion shares worth N19.976 billion exchanged in 20,701 deals. The Oil and Gas Industry followed with 262.484 million shares worth N17.996 billion, while the services Industry recorded 155.587 million shares valued at N532.941 million in 3,558 deals.

Access Holdings, Oando, and Zenith Bank were the top equities driving market activity, accounting for 517.336 million shares worth N24.454 billion. These three stocks contributed 24.16 per cent of the total trading volume and a significant 47.75 per cent of the total market value.

As investors face these fluctuating conditions, the market sentiment remains cautious. With mixed performances across sectors and reduced trading activity, the coming weeks will be critical in determining whether the market will rebound or continue its downward trend.

In the new week, analysts at Cowry Assets Management Limited said, “We expect mixed sentiment to rule the market activities with position-taking and portfolio reshuffling likely to intensify as market players await the half-year publication of interim dividend paying banks.

“From a technical perspective, the NGX is showing signs of recovery, as indicated by the candlestick formations and momentum indicators, with equity investors poised to capitalise on pullbacks to acquire value stocks. Nevertheless, we continue to advise investors to focus on fundamentally sound stocks.”

The chief operating officer of InvestData Consulting Limited, Mr Ambrose Omordion stated that, “we expect mixed sentiment on bargain hunting on pullbacks and banks interim dividend paying stocks in expectation of their half year numbers as sector rotation continue in the market. Portfolio repositioning is however continuing, with investors taking advantage of pullbacks to buy into value.”

“This is amid the volatility and pullbacks that add more strength to upside potential, saying that “consequently, investors should take advantage of price correction. Also looking at the trends and events across the globe and domestically”, he added.