NGX Loses N365bn as Bearish Sentiment Persists for Third Week

Samuel Mobolaji

The domestic equities market extended its losing streak last week, shedding N365 billion as bearish sentiment and profit-taking pressured key indices.

The decline, marking the third consecutive weekly loss, drove the market to a four-week low amid portfolio rebalancing and anticipation of further corporate earnings reports.

Meanwhile, the All-Share Index (ASI) declined by 0.55 per cent week-on-week to close at 105,955.13 points. Similarly, market capitalisation lost N365 billion to close the week at N66.352 trillion.

Sectoral performance was mixed as the NGX Insurance index led the gainers by 0.89 per cent week-on-week. The NGX Consumer Goods index followed with a weekly gain of 0.03 per cent, while NGX Commodity index rose by 0.02 per cent W-o-W.

Conversely, the NGX Oil & Gas index led the laggards with a weekly loss of 1.15 per cent. The NGX Banking index recorded a weekly loss of 0.45 per cent, while NGX Industrial index shed 0.21 per cent W-o-W.

Also, market breadth for the week was negative as 38 equities appreciated in price, 46 equities depreciated in price, while 66 equities remained unchanged.

Livestock Feeds led the gainers table by 22.16 per cent to close at N10.20, per share. Caverton Offshore Support Group followed with a gain of 15.38 per cent to close at N3.00, while FTN Cocoa Processors went up by 14.20 per cent to close to N1.85, per share.

On the other side, Neimeth International Pharmaceuticals led the decliners table by 17.00 per cent to close at N2.49, per share. MeCure Industries followed with a loss of 10.36 per cent to close at N11.25, while International Energy Insurance declined by 10.26 per cent to close at N1.75, per share.

Overall, a total turnover of 3.281 billion shares worth N63.517 billion in 60,782 deals was traded last week by investors on the floor of the Exchange, in contrast to a total of 1.818 billion shares valued at N47.226 billion that exchanged hands previous week in 64,222 deals.

Speaking on market performance, analysts at Cowry Assets Management Limited noted that the continued challenges faced by the local equities market week-on-week as global market trends exert pressure in a mixed fashion.

“The imposition of tariffs by former United States President Donald Trump on imports from China, Mexico, Canada, and the European Union contributed to volatile investor sentiment.”

Looking ahead, the research firm anticipated continued mixed sentiment as the market undergoes corrections, placing the exchange in an overbought region.

It stated further that, ‘profit-taking, portfolio reshuffling, and bargain hunting are likely to persist as investors digest corporate actions and Q1 earnings forecasts.’

On market outlook, the chief operating officer of InvestData Consulting Limited, Mr. Ambrose Omordion said, “we expect mixed sentiments to continue on profit taking, portfolio reshuffling and bargain hunting and digesting of corporate action and Q1 earnings forecast, as more earnings are expected to hit the market with dividend announcement.”