NGX Turnover Drops 50% To N161.8bn Amid Huge Selloffs

The Nigerian equities market recorded a weaker performance this week as total transactions on the Nigerian Exchange Limited (NGX) declined sharply by 50 per cent amid broad market selloffs and reduced investor activity across major sectors.

Data from the Exchange showed that a total turnover of 3.875 billion shares valued at N161.76bn was traded in 334,745 deals during the week, compared with 7.772 billion shares worth N374.04bn exchanged in 402,945 deals in the previous week.

The market downturn also reflected in the benchmark NGX All-Share Index (ASI), which depreciated by 0.25 per cent to close at 249,712.37 basis points, while market capitalisation declined by 0.23 per cent to settle at N160.08tn.

Analysts attributed the decline to profit-taking activities in some bellwether stocks as investors adopted a cautious stance amid prevailing macroeconomic uncertainties and portfolio rebalancing.

Sectoral performance was largely bearish, with most indices closing lower during the week. However, selective buying interest in banking, oil and gas, and growth stocks helped some sectoral gauges close in positive territory.

The NGX Banking Index advanced by 1.11 per cent, while the NGX AFR Bank Value Index appreciated by 1.47 per cent. Similarly, the NGX Oil & Gas Index rose marginally by 0.07 per cent, as investors sustained interest in energy counters.

Other gainers included the NGX Premium Index, which appreciated by 0.33 per cent; NGX Pension Index, up by 0.19 per cent; NGX MERI Growth Index, which rose 0.33 per cent; NGX Growth Index, which gained 1.57 per cent; and NGX Commodity Index, which edged higher by 0.02 per cent.

The NGX Sovereign Bond Index closed flat during the period, while the NGX Corporate Governance Index recorded a 0.24 per cent increase.

A breakdown of trading activity showed that the Financial Services Industry dominated the market in terms of volume, accounting for 2.410 billion shares valued at N69.71bn traded in 126,919 deals.

The sector contributed 62.19 per cent and 43.10 per cent to the total equity turnover volume and value respectively.
The Services Industry followed with 409.306 million shares worth N5.41bn traded in 25,908 deals, while the Oil and Gas Industry occupied third position with 294.859 million shares valued at N31.49bn in 26,738 deals.

Trading activity was concentrated in a few heavily traded banking and financial services stocks.

The top three equities by volume, Sterling Financial Holdings Company Plc, Fidelity Bank Plc and Access Holdings Plc, accounted for 1.092 billion shares worth N19.53bn in 21,683 deals.

The trio contributed 28.18 per cent and 12.07 per cent to the total equity turnover volume and value respectively, underlining sustained investor appetite for banking and financial services stocks.

Market breadth weakened significantly during the week as only 38 equities appreciated in price, lower than 74 equities recorded in the preceding week.

In contrast, 55 equities declined in price, higher than 24 losers posted previously, while 53 equities closed unchanged compared with 48 recorded in the prior week.

The negative market breadth indicates increased bearish sentiment among investors despite pockets of resilience in selected sectors, particularly banking and energy stocks.

Market analysts expect investors to continue monitoring corporate earnings releases, monetary policy signals, and macroeconomic developments for directional cues in the coming weeks.