The Nigerian equities market experienced a sharp retreat this past week, erasing significant gains as sustained sell-offs drove the benchmark index back below a crucial psychological level. Following an impressive, albeit volatile, run in the preceding months that saw the All-Share Index (ASI) briefly breach the 150,000-point mark—a level of high optimism not sustained in the market’s recent history—the recent bullish momentum faltered dramatically.
The ASI fell by 2.99 per cent over the five trading days, closing the week at 149,524.81 points, down from 154,126.46 points the previous week. This decline saw the market capitalization shed a staggering ₦2.81 trillion in value, dropping to ₦94.99 trillion.
The broad-based weakness was evident across all key sectors, with banking, telecoms, and industrial stocks being the main drag. All major indices closed in the red, reflecting widespread investor caution. The steepest sectoral fall was recorded by the NGX Insurance Index, which dropped a massive 7.56 per cent, led by losses in Sovereign Trust Insurance (-28.21%). The NGX Oil and Gas Index followed with a 4.80 per cent drop.
Meanwhile, the bellwether Banking Index slipped by 3.85 per cent. Heavyweights like Access Holdings (-10.02%), MTN Nigeria (-8.29%), and Lafarge (-6.43%) were among the biggest casualties on the NGX Premium Index, highlighting the flight from blue-chip stocks. Trading activity also weakened significantly week-on-week, underscoring the shift from aggressive buying to profit-taking and selling pressure, with losses recorded every day of the trading week.
Despite the prevailing gloom, a few stocks managed to defy the trend. A total of 20 equities recorded gains, a notable reduction from the 29 winners seen the week prior. NCR Nigeria Plc led the gainers with a surge of 20.94 per cent, followed closely by Eunisell Interlinked Plc (+20.17%). However, the list of losers was far longer, with 75 stocks declining, topped by the sharp fall in Sovereign Trust Insurance and C&I Leasing (-20.16%).
In corporate news, the week saw Airtel Africa Plc declare an interim dividend, while Ellah Lakes Plc received regulatory approval from the Securities and Exchange Commission (SEC) for its substantial ₦235 billion public offer, signaling continued activity in the primary market.
The market currently remains in a retracement phase as investors await new catalysts, including improved liquidity and the potential stabilization effect from Nigeria’s recent successful issuance of a $2.3 billion Eurobond. Historically, the introduction of foreign exchange liquidity is often viewed as a positive signal that could potentially renew foreign investor interest, though domestic factors are currently dictating price action.
