Equities market sheds N535bn in third weekly decline as bank stocks retreat
Nigerian equities shed N534.77 billion in market value last week, extending their decline for the third consecutive week as profit-taking in major banking stocks outweighed gains in selected technology, consumer goods and other counters.
The Nigerian Exchange (NGX) All-Share Index fell 0.33 per cent week-on-week to 247,539.73 points on Friday, October 16, from 248,363.55 points a week earlier, while market capitalisation declined to N160.73 trillion. The market’s year-to-date return moderated to 59.07 per cent.
The downturn reflected sustained selling pressure in heavyweight lenders, with Guaranty Trust Holding Company (GTCO) falling 2.27 per cent, Stanbic IBTC Holdings declining 2.14 per cent, Zenith Bank shedding 1.33 per cent, Sterling Financial Holdings losing 0.58 per cent and United Bank for Africa (UBA) dropping 0.35 per cent.
The sell-off dragged the NGX Banking Index down from 2,556.46 points to 2,532.47 points, highlighting the influence of financial stocks on overall market performance.
Friday’s session alone saw investors lose N108.70 billion as market capitalisation slipped 0.07 per cent from N160.83 trillion on Thursday to N160.73 trillion. The All-Share Index declined by 167.40 points to close at 247,539.73.
Trading activity weakened in volume terms, with 257.67 million shares exchanged, down 10.12 per cent from 286.68 million shares in the previous session. However, the number of deals rose 5.92 per cent to 31,972, indicating that transaction frequency increased even as fewer shares changed hands.
The broader market was not uniformly bearish. Thomas Wyatt Nigeria led the gainers with a 10 per cent appreciation to N2.42, followed by eTranzact International, which rose 9.84 per cent to N17.30, and Austin Laz & Company, up 9.77 per cent to N2.92.
Other notable gainers included Omatek Ventures, which advanced 9.59 per cent to N1.60, and Legend Internet, up 9.23 per cent to N3.55. Fidelity Bank also gained 4.73 per cent, offering some support to the financial sector.
On the losing side, UPDC Real Estate Investment Trust fell 10 per cent to N21.15, while Trans-Nationwide Express declined 9.09 per cent to N2.70. Critical Minerals Financing Corporation lost 8.06 per cent to N3.31, and Royal Exchange dropped 6.48 per cent to N1.01.
Sectoral performance reflected the market’s uneven direction. The Banking Index recorded the sharpest decline among major sector benchmarks, while the Insurance Index edged lower to 1,079.57 points. The Pension and Growth indices also weakened.
Consumer Goods bucked the broader trend, rising to 4,036.97 points, supported by marginal gains in Dangote Sugar Refinery and International Breweries. The Lotus Islamic Index advanced slightly, while the Industrial Index was virtually unchanged and the Oil and Gas Index closed flat at 6,194.00 points.
The three-week decline signals a more cautious phase for investors following the market’s strong earlier rally. With banking stocks accounting for a significant share of market value, continued profit-taking in major lenders could constrain further gains even as selected stocks attract buying interest.
For investors, the next direction of the market will depend increasingly on corporate earnings, dividend prospects and valuations, as the sustainability of the rally comes under greater scrutiny.
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