Trading activities on the Nigerian Exchange declined last week as investors exchanged 3.748 billion shares valued at N99.865 billion in 237,179 deals, representing a 23.6% drop from the 4.607 billion shares worth N130.636 billion traded in the previous week.
Market performance reflected the softer trading mood, with the NGX All-Share Index falling by 0.39 per cent to close at 165,512.18 points, while market capitalisation dipped by 0.37 per cent to N105.959 trillion. This amounted to N395 billion loss for stock investors.
According to trading statistics, most sectoral indices ended the week in negative territory, underscoring broad-based profit-taking, although select segments posted gains.
The Financial Services sector dominated equity trading by volume, accounting for 1.742 billion shares valued at N44.893 billion in 90,589 deals. This represented 46.49 per cent of total market volume and 44.95 per cent of total value traded.
The Services sector followed with 707.617 million shares worth N4.379 billion, while the ICT sector ranked third with 303.216 million shares valued at N5.932 billion.
Trading in Secure Electronic Technology Plc, Tantalizers Plc and Access Holdings Plc emerged as the most active by volume, jointly accounting for 734.086 million shares worth N5.720 billion, or 19.59 per cent of total market volume for the week.
Despite the general market pullback, a few indices recorded notable gains. For instance, the NGX Growth Index led the pack with a 6.27 per cent appreciation, followed by the NGX Oil and Gas Index, which rose by 1.36 per cent. The NGX Lotus II Index gained 0.37 per cent, while the NGX Commodity Index advanced by 0.79 per cent over the period.
Activity in the exchange-traded products segment strengthened, with 1.920 million units valued at N393.280 million traded in 2,509 deals, compared with 1.189 million units worth N191.945 million recorded in the previous week.
In contrast, bond market transactions declined, as 45,386 units valued at N48.053 million were traded in 22 deals, down from 104,111 units worth N111.736 million a week earlier.
Market breadth weakened during the week, as 58 equities recorded price appreciation, down from 80 in the preceding week. Forty equities depreciated, compared with 17 previously, while 50 stocks closed unchanged.
Deap Capital Management and Trust Plc topped the gainers’ chart with a 60.09 per cent increase, followed by SCOA Nigeria Plc and NCR Nigeria Plc, which gained 59.73 per cent and 46.36 per cent respectively. On the decliners’ table, Eterna Plc led the losses with an 11.92 per cent drop, alongside Secure Electronic Technology Plc and Industrial and Medical Gases Nigeria Plc, which also recorded notable price declines during the week.
Overall, the week’s trading highlighted cautious investor sentiment amid mixed sectoral performances, even as pockets of strong gains in growth and energy-related stocks offered some respite.
Analysts have predicted limited upside for Nigerian stocks and advised investors to adopt a cautious approach.
Looking ahead, Cowry Assets Management Limited said, “We expect the Nigerian equities market to remain range-bound in the near term, as cautious investor sentiment persists amid ongoing profit-taking and soft trading activity.
“While the recent pullback has moderated gains accumulated earlier in the year, the market’s year-to-date return of 6.36 per cent suggests that downside risks may be somewhat contained, particularly for fundamentally strong and dividend-paying stocks.”
Regarding the market outlook, Futureview Group stated, “We expect investors to trade cautiously, focusing on fundamentally strong stocks with attractive valuations.”
