Stock Market Ends Week Lower, Market Capitalisation Decline
The equities market in Nigeria closed the week with a decline, as reflected in the NGX All-Share Index (ASI) and market capitalization, which fell by 0.39% and 0.37%, closing at 165,512.18 points and N105.959 trillion, respectively. The market experienced a bearish trend as all indices dropped except for the NGX Oil & Gas, NGX Lotus II, NGX Growth, and NGX Commodity indices, which saw gains, marking increases of 1.36%, 0.37%, 6.27%, and 0.79% respectively.
Investor activity was lower this week with a total turnover of 3.748 billion shares valued at N99.865 billion in 237,179 deals, a decrease from the previous week’s turnover of 4.607 billion shares worth N130.636 billion traded in 263,439 deals. The Financial Services sector led market activity by volume, trading 1.742 billion shares valued at N44.893 billion, which accounted for approximately 46.49% of total equity turnover volume and 44.95% of the total value. The Services and ICT sectors followed, with 707.617 million shares worth N4.379 billion and 303.216 million shares valued at N5.932 billion, respectively.
The market breadth weakened during the week, with only 58 equities experiencing price appreciation compared to 80 the previous week. In contrast, the number of equities that declined in price rose to 40, up from 17 in the preceding week, while 50 equities remained unchanged.
Among the top gainers were Deap Capital Management & Trust Plc, which rose by 60.09%, followed by SCOA Nigeria Plc at 59.73%, and NCR Nigeria Plc at 46.36%. Other notable gainers included Zichis Agro Allied Industries Plc (+44.75%) and Daar Communications Plc (+41.67%). Conversely, Eterna Plc led the decliners with a drop of 11.92%, followed by Secure Electronic Technology Plc at -10.19% and Industrial & Medical Gases Nigeria Plc at -9.95%.
In a related note, the Central Bank of Nigeria (CBN) reported an increase in the country’s foreign exchange reserves for the first time in five months, providing support for the CBN’s efforts to stabilize the naira. As of the weekend, forex reserves rose by $1.72 million, reaching a total of $33.22 billion. The CBN reaffirmed its commitment to ensuring liquidity in the foreign exchange market to alleviate pressure on the local currency, reflecting concerns about external stability.
Overall, while certain sectors demonstrated resilience and gains amid a declining market trend, the overall sentiment reflects caution among investors as trading activity decreased and market breadth narrowed. The significant focus on financial services indicates ongoing investor interest, despite the volatility observed in segments of the market. The contribution of key sectors and the fluctuating market conditions prompt investors to remain vigilant amid economic uncertainties.
