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The Nigerian Exchange Limited (NGX) recorded a weekly decline as 55 listed companies saw their share prices fall, while 20 stocks appreciated amid profit-taking by investors.
The market’s performance reflected a correction following substantial gains recorded earlier in the year, as investors reassessed their portfolios and reduced exposure to selected equities.
Despite buying interest in some stocks, gains were insufficient to offset losses in influential companies, leaving the overall market in negative territory.
NGX Market Capitalisation Falls To ₦160.52tn
The NGX market capitalisation declined by more than ₦206bn during the week, closing at ₦160.519tn compared with ₦160.725tn recorded the previous week.
Similarly, the NGX All-Share Index (ASI) fell to 247,222.27 points from 247,539.73 points in the preceding week.
The decline came amid investor caution following the market’s strong year-to-date performance, with some participants reportedly taking profits on stocks that had recorded significant gains.
Analysts also pointed to rising international crude oil prices amid escalating geopolitical tensions in the Middle East as a factor investors were monitoring.
Although higher oil prices could support Nigeria’s export earnings and government revenue, their potential effects on domestic fuel prices, inflation and business operating costs remain concerns for the market.
NGX Trading Activity Increases
Trading activity increased in volume and value during the week, although the number of deals declined.
Investors traded 2.024 billion shares valued at ₦110.773bn in 173,113 deals, compared with 1.659 billion shares worth ₦98.088bn in 184,632 deals recorded in the previous week.
The figures indicate an increase in the volume and value of shares traded, despite a reduction in the number of transactions.
Financial Services Lead Trading Activity
The financial services industry dominated trading by volume, accounting for 1.111 billion shares valued at ₦53.908bn across 81,787 deals.
The sector contributed 54.89 per cent of total equity turnover volume and 48.66 per cent of turnover value.
The consumer goods industry ranked second, recording 394.039 million shares worth ₦9.811bn in 17,912 deals.
The agriculture industry placed third, with 147.170 million shares valued at ₦2.821bn traded in 7,462 deals.
The figures highlight the continued importance of financial services stocks to trading activity on the Nigerian Exchange.
Analysts Predict Cautious NGX Outlook
Analysts at InvestData Consulting Limited said the near-term outlook for the Nigerian equities market remained cautious as investors balanced the need to preserve gains against opportunities in selected stocks.
The analysts noted that the market’s substantial year-to-date appreciation provided context for the recent weakness, as some investors reduced their exposure after accumulating strong returns.
They also warned that continued selling pressure in banking, energy and other influential stocks could prolong the market’s consolidation.
“Further weakness in large capitalised stocks may continue to weigh on the benchmark even if selected equities record positive returns,” the analysts said.
The outlook suggests that the market’s direction will depend partly on investor sentiment, trading activity and the performance of major listed companies.
For investors, the latest figures highlight the contrast between increased trading turnover and declining market indicators, as participants continue to assess opportunities and risks across the Nigerian equities market.
