Equities Investors Lose N208bn, NGX ASI Sheds 0.32 as Bears...

Samuel Mobolaji

The Nigerian Exchange (NGX) closed last week in negative territory, as the All-Share Index (ASI) slipped by 0.32 per cent week-on-week to settle at 104,233.81 — its lowest level in four weeks — while market capitalisation dropped by N208 billion to close at N65.499 trillion.

The downbeat mood swept across key sectors, underlining deepening investor caution. The NGX Insurance index led sectoral laggards with a steep 4.57 per cent loss, trailed by the NGX Banking index, which slumped by 2.20 per cent.

Similarly, the Consumer Goods and Oil & Gas indices recorded weekly declines of 0.61 per cent and 0.50 per cent, while Industrial Goods and Commodity indices posted softer losses of 0.26 per cent and 0.10 per cent respectively.

Market breadth was equally subdued, as losers outnumbered gainers. Out of 147 traded stocks, only 31 advanced, while 44 recorded losses and 72 closed unchanged. Abbey Mortgage Bank stood out on the gainers’ chart, surging by 46.17 per cent to close at N8.96 per share, followed by Nigerian Breweries with a 13.13 per cent rise to N36.20, and Associated Bus Company, which appreciated by 12.70 per cent to N1.42 per share.

On the flip side, GTCO led the week’s laggards, dropping 13.00 per cent to close at N59.00 per share. Zenith Bank trailed with an 11.91 per cent decline to N44.00, while DAAR Communications slid by 11.11 per cent to close at 56 kobo.

Investor activity also weakened, as the market recorded a total turnover of 1.525 billion shares worth N43.006 billion in 51,156 deals — lower than the previous week’s 2.094 billion shares valued at N52.967 billion exchanged in 64,612 deals.

The Financial Services sector dominated trading volumes, accounting for 1.122 billion shares valued at N24.015 billion in 28,818 deals, representing 73.56 per cent and 55.84 per cent of total turnover volume and value respectively. ICT and Services sectors followed distantly, with 101.252 million shares and 99.776 million shares traded respectively.

However, Access Holdings, Fidelity Bank and Universal Insurance emerged as the week’s most traded stocks, jointly accounting for 448.105 million shares valued at N6.730 billion in 6,481 deals, representing 29.39 per cent of total volume and 15.65 per cent of total market value.

Meanwhile, capital market analysts anticipated sector rotation in the local equities market this week with investors investing in strong fundamentals stocks.

The equities market closed last week on a bearish note as investors continued to adopt a cautious stance amid an earnings season that has so far delivered little in the way of surprises.

Despite ongoing dividend announcements and corporate disclosures, investor appetite remained subdued, suggesting that market participants are more focused on macroeconomic signals than company-level news.

The 90-day pause on US tariffs offered some relief globally, but it failed to spark a meaningful rally on Customs Street. Instead, profit-taking and portfolio rebalancing dominated trading as investors rotated out of high-flyers and re-entered defensive counters.

Fir instance, analysts at Cowry Assets Management Limited stated that, “the short-term outlook for the market remains cautious. All eyes are now on the March CPI data and the Q1 2025 macroeconomic report, which are expected to offer more clarity on the direction of the economy and set the tone for risk sentiment.

“The market is currently sitting in oversold territory, which may provide a technical basis for a short-term rebound.”

The research firm noted that, sustained recovery will likely depend on improvements in economic indicators, policy clarity, and fresh triggers from corporate earnings, saying “until then, we expect continued sector rotation, with investors favouring value names and defensive plays with strong fundamentals and resilient earnings power.

“For savvy investors, this dip could be a buying opportunity, particularly in counters with robust dividend yields, solid balance sheets, and positive technical setups.