By Yahaya Umar
Nigerian Exchange ,NGX, recorded a sharp decline in market value last week as sustained sell pressure across key stocks erased approximately N4.91trn from investors’ holdings, dragging the benchmark index down by 3.11%.
Market data released by the Exchange showed that the NGX All-Share Index ,ASI, declined to 242,593.31 points from the previous week’s close, while market capitalisation fell by 3.06% to N155.59trn, reflecting widespread bearish sentiment across the equities market.
The decline came despite a significant increase in trading activity during the week. Investors exchanged a total of 3.966 billion shares valued at N175.66bn in 343,587 deals, compared with 2.398 billion shares worth N111.48bn traded in 241,313 deals in the preceding week. The figures represent increases of 65.4% in volume, 57.6% in value, and 42.4% in the number of deals.
Market breadth remained negative as declining stocks substantially outnumbered gainers. A total of 65 equities recorded price losses during the week, up from 51 in the previous week, while only 23 stocks appreciated, compared with 34 gainers recorded earlier. Meanwhile, 58 equities closed unchanged, lower than the 61 recorded in the preceding week.
Sectoral performance also reflected the prevailing bearish trend, with all major indices closing in negative territory except the NGX Sovereign Bond Index, which finished flat.
The Financial Services Industry dominated trading activities, accounting for 2.690 billion shares valued at N69.98bn in 134,882 deals.
The sector contributed 67.83% of total trading volume and 39.84% of total market value traded during the week.
The Services Industry ranked second with 323.601 million shares worth N6.443 billion exchanged in 25,906 deals, while the Information and Communications Technology ,ICT, sector occupied third position with 176.039 million shares valued at N27.89bn traded in 40,837 deals.
Activity in a few heavily traded stocks also boosted overall market turnover. Access Holdings Plc, Abbey Mortgage Bank Plc and Sterling Financial Holdings Company Plc emerged as the most actively traded equities by volume, accounting for a combined 1.290 billion shares worth N17.56bn in 17,768 deals.
Together, the three stocks contributed 32.53% of total equity turnover volume and 10% of total turnover value during the week.
Analysts attributed the market downturn to profit-taking activities and cautious investor sentiment following recent gains in several blue-chip stocks, with investors repositioning portfolios amid prevailing economic and market uncertainties.
The week’s performance underscores the fragile balance between strong trading activity and investor confidence, as increased market participation failed to halt the broad-based decline in share prices and overall market capitalisation.
