NGX Equity Trading Slumps 49%, Market Cap Falls To N154.53tn

The Nigerian Exchange (NGX) recorded a sharp decline in trading activity this week as investors exchanged 6.242 billion shares valued at N157.76bn in 186,496 deals, compared with 12.153 billion shares worth N176.058bn traded in 224,146 deals in the previous week.

The latest weekly market data showed that equity turnover by volume fell by 48.64 per cent, while the value of transactions declined by 10.39 per cent week-on-week, reflecting reduced trading activity despite continued investor participation across major sectors.

The NGX All-Share Index (ASI) declined by 1.35 per cent during the week to close at 239,351.16 points, while the total market capitalisation fell by 1.33 per cent to N154.53tn.

The decline in the benchmark index indicates a broad weakening in equity prices, with selling pressure affecting most sectors of the market. All other sectoral indices closed lower during the week, except the NGX Consumer Goods Index, which gained marginally by 0.05 per cent.

The NGX Sovereign Bond Index was unchanged at the end of the trading week.
Despite the broad market decline, the Financial Services Industry continued to dominate trading activity, accounting for the largest share of equity turnover by volume.

The sector recorded 5.594 billion shares worth N56.43bn traded in 82,300 deals, representing 89.62 per cent of total equity turnover volume and 35.77 per cent of total equity turnover value.

The Information and Communication Technology (ICT) Industry ranked second, with 143.704 million shares valued at N29.79bn traded in 23,740 deals.

The Services Industry occupied the third position, recording 138.672 million shares worth N1.75bn in 11,438 deals.

Trading activity was also heavily concentrated in a handful of equities, with Fortis Global Insurance Plc, Lasaco Assurance Plc and Consolidated Hallmark Holdings Plc emerging as the three most actively traded stocks by volume.

The three equities collectively accounted for 4.168 billion shares valued at N9.25bn traded in 1,660 deals.

Their combined volume represented 66.77 per cent of total equity turnover during the week, while their value accounted for 5.86 per cent of total turnover value.

The concentration of trading volume in the three insurance-related stocks highlights the significant influence of the financial services sector on overall market activity during the period.

Meanwhile, market breadth remained negative, although the number of gainers declined from the previous week.

A total of 18 equities appreciated in price during the week, compared with 26 equities in the previous week, indicating a reduction in the number of stocks recording positive price movements.

On the other hand, 59 equities declined in price, unchanged from the previous week’s figure of 59 losers.

The number of equities that closed unchanged rose to 70 from 62 in the preceding week, suggesting that a larger proportion of listed stocks remained relatively stable despite the broader market decline.

The combination of lower turnover, a 1.35 per cent decline in the All-Share Index and negative market breadth points to a cautious trading environment as investors reassessed positions across major segments of the market.

The weekly performance also contrasts with the previous week’s significantly higher trading volume, when investors exchanged more than 12.15 billion shares.

The substantial decline in volume suggests that market activity moderated considerably during the latest trading period, even though the reduction in transaction value was comparatively smaller.

Overall, the NGX closed the week on a weaker footing, with investors recording lower trading activity and broad-based price declines, while the Financial Services Industry remained the dominant driver of equity market volume.