Last week, the Nigerian equities market closed in negative territory after experiencing declines in three of the five trading sessions. Consequently, the NGX-All Share Index (ASI) slipped by 4 basis points (bps), closing at 100,022.03 points. This drop caused the overall market capitalisation to decline by ₦20.8 billion, settling at ₦56.6 trillion. Despite these shifts, the Year-to-Date (YTD) return remained steady at 33.8%.
Market activity saw a downturn, with the average daily trading volume decreasing by 14.8% to 451.8 million units, and the average daily value of transactions falling sharply by 37.6% to ₦6.2 billion. The most traded stocks by volume included FIDELITY (688.1 million units), UNIVINSURE (100.2 million units), and GTCO (87.1 million units). In terms of transaction value, FIDELITY led with ₦7.2 billion, followed by GTCO (₦4.2 billion) and UCAP (₦1.9 billion).
Sector Performance
The market performance across sectors was mixed but leaned bullish, as four indices recorded gains while two experienced losses.
- Banking Sector: Positive movements in JAIZBANK (+19.5%), UBA (+5.6%), and FIDELITY contributed to a 3.9% weekly increase in the Banking index.
- Oil & Gas Sector: Stocks like CONOIL (+20.5%) and OANDO (+13.3%) drove the sector’s index up by 3.0% week-on-week.
- Insurance Sector: Gains in WAPIC (+17.9%) and AIICO (+13.4%) lifted the Insurance index by 2.3% over the week.
- Industrial Goods Sector: A 0.2% weekly rise was attributed to a 5.7% gain in WAPCO.
However, losses in key stocks weighed down other sectors:
- AFR-ICT Sector: The index fell by 2.4% due to declines in MTNN (-6.5%).
- Consumer Goods Sector: Declines in MAYBAKER (-6.6%) and DANGSUGAR (-5.8%) dragged the index down by 0.7% week-on-week.
Investor Sentiment and Market Breadth
Investor sentiment weakened during the week, as indicated by a market breadth of -0.1x compared to 0.2x the previous week. Out of the total listed stocks, 36 gained, 44 lost, and 70 remained unchanged.
Top Performers:
- VERITASK (+25.0%)
- CONOIL (+20.5%)
- JAIZBANK (+19.5%)
Lagging Stocks:
- UPDC (-17.4%)
- IKEJAHOT (-12.0%)
- LASACO (-9.8%)
Outlook for the Week Ahead
Looking ahead, bearish sentiment is expected to persist in the market as investor confidence remains subdued. Market participants will likely continue exercising caution amid concerns over macroeconomic conditions and sector-specific challenges.
