Nigerian Stocks Fall N366 Billion Weekly on Profit-Taking

The Nigerian Exchange Limited (NGX) experienced a week-on-week decline of N366 billion in market capitalization, primarily driven by investor profit-taking activities, notably in BUA Cement Plc which saw a 3.5% drop. The All-Share Index (ASI) closed at 249,712.37 basis points, a 0.25% decrease from the previous week. This cautious sentiment also moderated the month-to-date and year-to-date returns to +3% and +60.4%, respectively.

The market breadth further weakened, with 43 stocks advancing and 53 declining, indicating limited and selective buying interest. Associated Bus Company led the gainers with a 44.82% increase, while Sovereign Trust Insurance topped the decliners with a 22.45% loss.

In terms of trading volume and value, investors traded 3.875 billion shares worth N161.757 billion in 334,745 deals. The financial services industry dominated activity, accounting for 62.19% of the total equity turnover volume and 43.10% of the value. Trading in Sterling Financial Holdings Company, Fidelity Bank, and Access Holdings represented a significant portion of this activity.

Capital market analysts predict that trading on the Nigerian equities market will remain relatively muted in the coming week, as a major positive catalyst is lacking to drive a broad rebound. They anticipate selective bargain hunting on fundamentally sound stocks, especially following recent price moderation.

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we expect market activity to remain relatively subdued in the near term in the absence of a major positive catalyst to drive sentiment. Nonetheless, we do not rule out selective bargain hunting across fundamentally sound names following the recent moderation in prices