Investors lose N2.1 trn as sell pressures, weak demand deflate stocks

By Peter Egwuatu

Investors lose N2.1 trn as sell pressures, weak demand deflate stocks

By Peter Egwuatu

The Nigerian equities market continued its bearish stretch last week, reflecting sell pressures and weak demands, which resulted in investors losing N2.1 trillion in five trading days.

Specifically, the Nigerian Exchange Limited, NGX market capitalisation, which reflects total value of stocks listed on the Exchange, dropped to N91.410 trillion from N93.501 trillion in the previous week.

In similar manner, the NGX All Share Index, ASI, another major market performance indicator declined by 2.2% to 143,722.62 points from 147,013.59 points recorded the previous week.

Analysts emphasised that the sustained downturn in several high-volume and bellwether stocks has kept the overall market direction subdued, as traders weighed short-term opportunities against the growing need to protect capital ahead of year-end portfolio adjustments.

Meanwhile, analysis of the activities last week shows that a total turnover of 2.668 billion shares worth N106.264 billion in 107,998 deals was traded by investors in contrast to a total of 7.325 billion shares valued at N156.425 billion that exchanged hands the previous week,  in 134,383 deals.

The Financial Services Industry (measured by volume) led the activity chart with 1.820 billion shares valued at N44.806 billion traded in 45,297 deals; thus contributing 68.21% and 42.16% to the total equity turnover volume and value respectively. The Services Industry followed with 324.191 million shares worth N1.761 billion in 8,018 deals. Third place was the Oil and Gas Industry, with a turnover of 143.185 million shares worth N37.741 billion in 7,788 deals.

Trading in the top three equities, namely Access Holdings Plc, Tantalizers Plc and Zenith Bank Plc (measured by volume), accounted for 1.057 billion shares worth N24.652 billion in 13,924 deals, contributing 39.63% and 23.20% to the total equity turnover volume and value respectively.

Reacting on market performance and outlook, analysts at InvestData Consulting Limited, stated: “The NGX ASI remains firmly in bearish territory, trading below short-term moving averages, which confirms the persistence of downward momentum. The index’s declining trajectory reflects weakening demand, as evidenced by shrinking transaction volumes and flattening market breadth”.

Continuing, the analysts said: “However, buyers remain largely cautious, seeking clearer macro signals and improved market-wide liquidity before taking meaningful positions. The extended period of selling may set the stage for intermittent recoveries, but the broader direction remains dependent on market catalysts such as upcoming corporate announcements, sector-specific developments, and shifts in fixed-income yields”.

Specifically, the Nigerian Exchange Limited, NGX market capitalisation, which reflects total value of stocks listed on the Exchange, dropped to N91.410 trillion from N93.501 trillion in the previous week.

In similar manner, the NGX All Share Index, ASI, another major market performance indicator declined by 2.2% to 143,722.62 points from 147,013.59 points recorded the previous week.

Analysts emphasised that the sustained downturn in several high-volume and bellwether stocks has kept the overall market direction subdued, as traders weighed short-term opportunities against the growing need to protect capital ahead of year-end portfolio adjustments.

Meanwhile, analysis of the activities last week shows that a total turnover of 2.668 billion shares worth N106.264 billion in 107,998 deals was traded by investors in contrast to a total of 7.325 billion shares valued at N156.425 billion that exchanged hands the previous week,  in 134,383 deals.

The Financial Services Industry (measured by volume) led the activity chart with 1.820 billion shares valued at N44.806 billion traded in 45,297 deals; thus contributing 68.21% and 42.16% to the total equity turnover volume and value respectively. The Services Industry followed with 324.191 million shares worth N1.761 billion in 8,018 deals. Third place was the Oil and Gas Industry, with a turnover of 143.185 million shares worth N37.741 billion in 7,788 deals.

Trading in the top three equities, namely Access Holdings Plc, Tantalizers Plc and Zenith Bank Plc (measured by volume), accounted for 1.057 billion shares worth N24.652 billion in 13,924 deals, contributing 39.63% and 23.20% to the total equity turnover volume and value respectively.

Reacting on market performance and outlook, analysts at InvestData Consulting Limited, stated: “The NGX ASI remains firmly in bearish territory, trading below short-term moving averages, which confirms the persistence of downward momentum. The index’s declining trajectory reflects weakening demand, as evidenced by shrinking transaction volumes and flattening market breadth”.

Continuing, the analysts said: “However, buyers remain largely cautious, seeking clearer macro signals and improved market-wide liquidity before taking meaningful positions. The extended period of selling may set the stage for intermittent recoveries, but the broader direction remains dependent on market catalysts such as upcoming corporate announcements, sector-specific developments, and shifts in fixed-income yields”.

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