Investors Lose N2.29trn in One Week As NGX Extends Losing Streak

The Nigerian equities market closed the week on a sour note, as broad-based selloffs across Banking, Insurance, oil and gas, and Industrial Goods stocks wiped out N2.29 trillion from investors’ wealth, extending losses into a second consecutive week.

The benchmark NGX All-Share Index (ASI) slipped 0.77 per cent week-on-week to settle at 144,628.20 points, while market capitalisation fell sharply to N89.209 trillion. The decline further trimmed the year-to-date return to 37.00 per cent, raising concerns about weakening investor confidence in the face of tightening liquidity and economic headwinds.

Market breadth remained negative, underscoring the bearish mood, with 43 gainers against 54 decliners. Austin Laz & Company emerged as the week’s best-performing stock, appreciating by 20.83 per cent to N2.90 per share. NCR Nigeria followed with a gain of 20.69 per cent to N10.50, while Nigerian Enamelware surged 19.45 per cent to close at N39.00 per share.

On the losers’ chart, Thomas Wyatt Nigeria slumped 18.92 per cent to N3.00 per share to lead the pack, trailed by NEM Insurance, which lost 18.15 per cent to N26.60. Stanbic IBTC Holdings also recorded a significant decline, shedding 15.39 per cent to N94.00 per share.

Market activity slowed considerably, with total turnover falling to 4.773 billion shares valued at N107.426 billion in 152,965 deals. This compares with 8.564 billion shares worth N99.936 billion traded the previous week in 177,870 deals, indicating declining participation and a more cautious trading pattern.

Looking ahead, analysts project continued volatility with limited upside potential. Cowry Asset Management Limited said the equities market is likely to trade mixed, with cautious sentiment dominating overall performance. It noted that persistent selloffs in Banking and Industrial Goods stocks could maintain pressure on the market, even as bargain-hunting in oversold counters within Consumer Goods may spur mild recoveries. “Absent any major policy pronouncements or positive earnings releases, market activity is likely to remain subdued, with the NGX All-Share Index projected to move within a narrow band,” the firm stated.

United Capital Plc, however, maintained a more positive stance, expressing confidence that the financial services sector—particularly banking and insurance stocks, may remain attractive to investors. It added that expectations of stronger earnings from the manufacturing sector could provide fresh momentum and boost sentiment in selected counters.

Afrinvest Limited, on the other hand, projected a mixed performance with a bearish tilt, highlighting that investors are likely to continue reassessing their portfolio positioning amid the release of half-year 2025 interim dividends, sustained pressure on blue-chip stocks, and the absence of strong positive triggers.

With tightening macroeconomic conditions, weakening market breadth, and declining turnover, the equities market remains under significant pressure, leaving investors cautious and highly selective in their approach. The coming weeks, analysts say, will be critical in determining whether bargain-hunting can offset the persistent wave of selloffs or if the bearish momentum will drag the NGX deeper into negative territory.