Nigeria’s equities market recorded a notable downturn last week, with investors pulling back gains made in recent trading sessions. The All-Share Index (ASI) of the Nigerian Exchange Limited (NGX) closed at 165,512.18 basis points, down from 166,129.50 basis points, representing a week-on-week decline of 0.37% as sentiment weakened. This marked the market’s first negative weekly performance in recent weeks after a period of strong gains.
The market capitalisation of listed equities also fell sharply, shedding about ₦395 billion, closing the week at ₦105.959 trillion compared to ₦106.354 trillion at the start of the trading week. Analysts attributed the pullback largely to profit-taking by investors who have been locking in gains after a sustained rally in 2025, tempering overall sentiment and trading activity on the bourse. Sector performance reflected the broader risk-off mood. The NGX Consumer Goods Index dropped by 2%, the NGX Banking Index slid by 1.3%, and both the Industrial Goods and Insurance indices faced slight declines, while the Oil & Gas index bucked the trend with a modest 1.4% gain. This mixed performance suggests selective defensive repositioning by investors amid profit-taking pressures. Despite overall weakness, market breadth remained moderately positive, with 57 advancing stocks outnumbering 40 decliners, indicating pockets of bargain hunting. Some stocks, such as DEAP Capital Management & Trust and SCOA Nigeria, posted significant weekly gains, while others like Eterna and Secure Electronic Technology saw notable declines. Total turnover also dropped week-on-week, reflecting reduced trading interest. Market analysts say the outlook for the near term is cautious, with the equities market expected to remain range-bound as investors recalibrate portfolios ahead of upcoming earnings releases and in response to broader macroeconomic signals. While the market remains down from its recent peaks, its year-to-date return of over 6% suggests that well-fundamental stocks may still offer value for long-term investors.
About The Author
