By Peter Egwuatu
The Nigerian stock market closed Week on Week, WoW, last week in a negative territory as broad-based profit taking intensified across key sectors, outweighing buying interest and reversing the bullish trend of the previous weeks.
Specifically, the Nigerian Exchange Limited, NGX, All Share Index, ASI, which represents the barometer of the stock market performance declined 0.4% WoW to close at 165,512.18 points from 166,129.50 points the previous week.
Similarly, another major performance indicator, NGX capitalisation, which represents the total value of shares listed on the Exchange nosedived by about N394 billion to close at 105,959 trillion from N106.353 trillion the previous week.
Analysts have explained that the pullback reflects investors’ cautious positioning following recent rallies, particularly in large-capitalised stocks, as market participants continue to rebalance portfolios ahead of the next earnings season and evolving macro signals.
A review of the stock trading showed that a total turnover of 3.748 billion shares worth N99.865 billion in 237,179 deals was traded last week by investors on the floor of the Exchange, in contrast to a total of 4.607 billion shares valued at N130.636 billion that exchanged hands the previous week in 263,439 deals.
The Financial Services Industry (measured by volume) led the activity chart with 1.742 billion shares valued at N44.893 billion traded in 90,589 deals; thus contributing 46.49% and 44.95% to the total equity turnover volume and value respectively. The Services Industry followed with 707.617 million shares worth N4.379 billion in 18,322 deals.
Third place was the ICT Industry, with a turnover of 303.216 million shares worth 5.932 billion in 24,107 deals.
Trading in the top three equities, namely Secure Electronic Technology Plc, Tantalizers Plc and Access Holdings Plc (measured by volume), accounted for 734.086 million shares worth N5.720 billion in 15,726 deals, contributing 19.59% and 5.73% to the total equity turnover volume and value respectively.
Meanwhile, fifty-eight (58) equities appreciated in price during the week under review lower than eighty (80) equities in the previous week. Forty (40) equities depreciated in price, higher than seventeen (17) equities in the previous week, while fifty (50) equities remained unchanged, same as fifty (50) recorded in the previous week.
Reacting to the market performance, analysts at InvestData Consulting Limited stated: “Selling pressure was concentrated in heavyweight names across the banking, consumer goods, and industrial goods spaces, where earlier gains prompted short-term traders to lock in profits. Despite pockets of resilience in select mid- and small-cap stocks, overall demand was insufficient to counter losses in index bellwethers, keeping the market in consolidation mode.”
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