Nigeria’s equities market closed last week on a negative note, with investors booking ₦712 billion in losses, as bearish sentiment outweighed gains across key sectors. The Nigerian Exchange Limited (NGX) All-Share Index fell by 0.77%, settling at 144,628.20 points, while market capitalisation declined to ₦91.50 trillion from the previous week’s ₦92.21 trillion.
Market Snapshot: Bears Take Control
Trading activity was mixed, with the market recording three sessions of declines and two positive closes. The bearish momentum reflected investor caution amid global economic uncertainty, domestic inflationary pressures, and portfolio rebalancing by institutional players.
While most indices trended lower, a few sectors bucked the downtrend:
- Insurance (+8.21%) led sectoral gainers, buoyed by fresh interest in low-priced counters.
- NGX AFR Dividend Yield (+1.57%) and NGX Growth (+9.50%) also closed higher.
- Broadly, however, banking, consumer goods, and industrials weighed heavily on the market.
Activity Levels: Financials Dominate Turnover
Total market turnover stood at 8.56 billion shares worth ₦99.94 billion, traded in 177,870 deals, slightly lower than the previous week’s 8.73 billion shares valued at ₦134.58 billion.
- Financial Services accounted for the lion’s share of activity, with 6.92 billion shares worth ₦56.72 billion (over 80% of volume).
- Oil & Gas followed with 387.65 million shares worth ₦8.50 billion, reflecting continued interest in energy plays.
- Agriculture placed third with 315.54 million shares worth ₦6.02 billion, highlighting diversification interest beyond traditional blue chips.
Insurance tickers—Universal Insurance, Linkage Assurance, and AIICO Insurance—dominated volumes, accounting for 32.5% of total market activity.
Winners and Losers: Diverging Fortunes
Market breadth weakened, with 50 gainers against 49 decliners, while 47 stocks remained flat.
Top Losers:
- UPDC Plc (-₦1.40)
- Livingtrust Mortgage Bank (-₦0.80)
- Berger Paints (-₦5.50)
- VFD Group (-₦1.50)
- Unilever Nigeria Plc (-₦8.20)
Top Gainers:
- Mutual Benefits (+31.85%)
- Tripple Gee (+30.23%)
- Sunu Assurances (+23.80%)
- Mecure Industries (+20.50%)
- Deap Capital (+19.26%)
Context: Why the Market Stumbled
The dip reflects both macro headwinds and investor repositioning:
- Tight liquidity: Domestic investors are rebalancing portfolios in response to CBN’s tightening stance.
- Global factors: Foreign portfolio inflows remain muted as global rates stay high, limiting emerging market appetite.
- Profit-taking: After strong rallies in select sectors earlier in the quarter, profit booking pressured valuations.
Interestingly, the Insurance Index’s resilience shows that investors are rotating into defensive, low-cap stocks with room for growth—an important signal of sectoral shifts.
Investor Outlook: Volatility with Pockets of Opportunity
Short-term volatility is expected to persist as investors weigh macroeconomic risks against Nigeria’s longer-term growth story. Analysts see selective opportunities in:
- Banking stocks, given recapitalisation momentum.
- Insurance, which is benefiting from regulatory enforcement and increased penetration.
- Agriculture and consumer plays, riding on government diversification and food security drive.
Yet, risks remain: high inflation, forex pressures, and sluggish FDI inflows continue to challenge valuations.
