Nigeria’s Equity Market Sees N83 Billion Decline Amid Sell-Offs In Big Stocks

The Nigerian equity market saw a significant dip last week, losing N83 billion as a result of sell-offs in major stocks.

Both the All-Share Index (ASI) and the market capitalisation fell by 0.15%, with the ASI closing at 96,433.53 points and the market capitalisation settling at N55.39 trillion. “We noticed a pattern of sell-offs, especially in blue-chip stocks,” said a stockbroker.

Despite the downturn, the Oil and Gas sector stood out, showing resilience with a 1.52% gain in its index. This performance was in contrast to the broader market trend, which saw most sectors in decline.

Investors Trade 2.14 Billion Shares

During the week, investors exchanged 2.14 billion shares valued at N51.22 billion across 55,603 deals. This was a drop compared to the previous week, where 2.82 billion shares worth N53.048 billion were traded in 50,488 deals.

“The lower trading volume reflects investor caution amid market volatility,” said a market analyst.

The financial services industry led the week’s activity, contributing 1.23 billion shares valued at N19.98 billion. This accounted for 57.40% of the total equity turnover volume and 39% of the total value.

The oil and gas industry followed closely with 262.484 million shares worth N18 billion traded in 14,275 deals.

Key Equities Dominate Market Activity

Access Holdings Plc, Oando Plc, and Zenith Bank Plc were the most actively traded stocks by volume. Together, these three equities accounted for 517.336 million shares worth N24.45 billion across 15,502 deals.

Their activity contributed 24.16% of the total equity turnover volume and a remarkable 47.75% of the total value.

Daily trading figures showed fluctuations in both volume and value. Monday started the week with 498.119 million shares worth N11.037 billion traded in 13,149 deals.

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By Tuesday, the volume decreased to 473.004 million shares valued at N10.411 billion, exchanged in 12,532 deals. The downward trend continued into Wednesday, with 389.232 million shares traded at N8.180 billion.

“We saw a clear decline in the middle of the week, but this is not uncommon,” explained a financial analyst.

Thursday brought a slight recovery as 388.617 million shares exchanged hands for N9.565 billion. The market ended the week stronger on Friday, with 392.509 million shares valued at N12.024 billion in 7,986 deals.

Stock Performances: Winners and Losers

Out of all the equities traded, 36 stocks appreciated, a decrease from 46 the previous week. However, 46 stocks declined, higher than the 26 recorded the week before. A total of 69 stocks remained unchanged.

Among the top gainers were Industrial & Medical Gases Nigeria Plc, which rose by 32.58% to close at N35.00, and Berger Paints Plc, which gained 31.12%, closing at N18.75. E-Tranzact International Plc also saw an increase, climbing 20.59% to N6.15.

On the flip side, RT Briscoe Plc led the losers with a 27.61% drop, closing at N2.57. FTN Cocoa Processors Plc also fell by 18.38%, finishing at N1.51.

In addition, University Press Plc made an important announcement regarding a price adjustment after declaring a dividend. The company’s stock price closed at N2.51, and it declared an N0.025 dividend per share, with a closure date of September 5.

Market Outlook

Afrinvest, a leading market analyst, commented on the week’s market performance, noting that “the local bourse retreated from last week’s positive territory, triggered by sell-offs on major stocks.” Despite pockets of gains, the overall market decline was clear, as the NGX All-Share Index fell by 15 basis points (bps) to 96,433.53 points.

“Market capitalisation also shed 15 bps, representing a loss of N83.8 billion, bringing it down to N55.4 trillion,” Afrinvest added. The firm further noted that year-to-date returns declined slightly to 29.0%, down from 29.2% the previous week.

As trading volume and value dropped by 24.1% and 3.5% respectively, the market showed a cautious tone, with investors watching for signals that could influence the next wave of market activity.