NGX Market Cap Falls To N91.4trn As Trading Drops By 64%

The Nigerian Exchange (NGX) endured a sharp downturn in market activity and performance this week as trading volume fell significantly and key indicators closed deep in negative territory.

The Exchange reported that investors traded a total of 2.668 billion shares worth N106.26bn in 107,998 deals, representing a steep 64 per cent decline from the 7.325 billion shares valued at N156.43bn exchanged last week across 134,383 deals.

The slowdown in activity coincided with a broad retreat in market indicators as renewed sell pressure dragged the benchmarks lower. The NGX All-Share Index dropped by 2.24 percent to close at 143,722.62 points, while market capitalization fell by 2.23 percent to settle at N91.42trn, wiping out substantial value amid negative investor sentiment.

Almost all sectoral indices depreciated, reflecting the breadth of the bearish performance.

The only exception was the NGX Sovereign Bond Index, which gained 0.32 per cent as fixed-income investors continued to show strong appetite for sovereign instruments despite weakness in the equities market.

The Financial Services Industry remained the most active during the week, contributing the bulk of liquidity on the Exchange.

The sector recorded a turnover of 1.820 billion shares valued at N44.806bn traded in 45,297 deals, accounting for 68.21 per cent of the week’s total volume and 42.16 per cent of total value.

The Services Industry followed with 324.191 million shares worth N1.761bn in 8,018 deals, while the Oil and Gas Industry ranked third with 143.185 million shares valued at N37.74bn in 7,788 deals, driven largely by increased activity in downstream majors.

Investor interest was heavily concentrated in three equities, Access Holdings Plc, Tantalizers Plc and Zenith Bank Plc, which emerged as the most traded stocks by volume.

The trio accounted for a combined 1.057 billion shares worth N24.652bn executed in 13,924 deals, representing 39.63 per cent of total equity turnover volume and 23.20 per cent of value.

Market breadth weakened significantly as only 20 equities recorded price appreciation during the week, sharply lower than the 48 gainers posted in the previous week.

In contrast, 60 equities declined in price compared with 45 losers a week earlier, while 67 equities closed unchanged, an increase from 53 in the prior week.

Analysts say the sharp contraction in turnover and the broad market decline suggest heightened investor caution, driven by macroeconomic uncertainties and reactive portfolio adjustments.

They, however, anticipate some bargain-hunting in the coming sessions as investors take advantage of lower valuations in fundamentally strong stocks.