By Chukwuma Umeorah
The Nigerian equities market extended its decline for a second consecutive week as sustained sell-offs in heavyweight stocks and weakening trading activity weighed on investor sentiment, erasing about N366 billion from market capitalisation.
Data from the Nigerian Exchange (NGX) showed that the All-Share Index (ASI) fell by 0.25 per cent week-on-week (WoW) to close at 249,712.37 points from 250,330.92 points recorded in the previous week. Consequently, market capitalisation declined by 0.23 per cent to N160.08 trillion.
The market’s negative performance came amid broad-based profit-taking and cautious positioning by investors navigating a high-interest-rate environment that continues to support attractive returns in fixed-income securities. Trading activity weakened considerably during the week. Investors exchanged 3.88 billion shares valued at N161.76 billion in 334,745 deals, compared with 7.77 billion shares worth N374.04 billion traded in 402,945 deals the previous week.
The sharp decline in both transaction volume and value reflected a slowdown in market participation as investors adopted a more selective approach to equity investments.
Market breadth also deteriorated, with 55 stocks recording price declines compared with 38 gainers, while 53 equities closed unchanged. This represented a significant reversal from the preceding week when 74 stocks advanced against 24 decliners.
Analysts at Cowry Asset Management attributed the market’s weak performance to widespread losses in large-cap counters, noting that negative market breadth reflected “limited and highly selective buying interest.” The firm added that investor participation remained subdued as the number of deals, traded volume and transaction value all declined significantly during the week.
Sectoral performance was mixed, although losses in key sectors outweighed gains recorded elsewhere. The NGX Banking Index emerged as one of the strongest performers, rising by 1.11 per cent on the back of buying interest in banking stocks including Fidelity Bank, Zenith Bank and Stanbic IBTC Holdings. The NGX AFR Bank Value Index advanced by 1.47 per cent, while the NGX Premium Index gained 0.33 per cent.
The oil and gas sector also recorded a marginal gain of 0.07 per cent, while the NGX Growth Index rose by 1.57 per cent. However, the insurance sector led the losers, declining by 1.77 per cent, followed by the industrial goods index which fell by 1.24 per cent. Consumer goods stocks also came under pressure, declining by 0.84 per cent during the week.
The Financial Services sector remained the dominant driver of market activity, accounting for 62.19 per cent of total traded volume and 43.10 per cent of total transaction value. A total of 2.41 billion shares valued at N69.71 billion were traded in the sector. Services stocks followed with 409.31 million shares worth N5.41 billion, while the oil and gas sector recorded 294.86 million shares valued at N31.50 billion.
Trading in Fidelity Bank Plc, Sterling Financial Holdings Company Plc and Access Holdings Plc accounted for 1.09 billion shares worth N19.53 billion, representing 28.18 per cent of total market volume and 12.07 per cent of transaction value.
Among the week’s top performers werr Associated Bus Company Plc rose 44.82 per cent to close at N9.08 per share. Academy Press Plc gained 29.79 per cent, University Press Plc advanced 28 per cent, while International Energy Insurance Plc and Learn Africa Plc also recorded strong gains.
On the losers’ chart, Sovereign Trust Insurance Plc declined by 22.45 per cent, while Trans-Nationwide Express Plc shed 18.98 per cent. CAP Plc, Berger Paints Plc and RT Briscoe Plc were also among the major laggards.
The market’s subdued performance comes days after the Monetary Policy Committee of the Central Bank of Nigeria retained the Monetary Policy Rate at 26.5 per cent, maintaining a tight monetary stance aimed at containing inflationary pressures.
According to Cowry, elevated fixed-income yields and prevailing macroeconomic uncertainties have continued to encourage investors to adopt defensive positions, limiting broad-based demand for equities. The firm noted that buying interest remains concentrated in fundamentally strong stocks, particularly within the banking and oil and gas sectors.
Despite the weekly decline, the equities market has maintained a strong performance in 2026, with the NGX All-Share Index posting a year-to-date return of 60.47 per cent.
Analyst expect market activity to remain largely stock-specific as investors continue to assess corporate earnings prospects, monetary policy developments and sector-specific opportunities. Although they suggest that the weak sentiment and profit-taking could continue to influence trading in the near term, although selective buying is likely to persist in fundamentally strong counters.
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