NGX market cap sheds N532bn as sell pressure persists
BY MOTOLANI OSENI
The Nigerian Exchange, NGX, extended its losing streak as investors offloaded equities, wiping out N532 billion from the market capitalisation over the week.
The persistent sell pressure saw the benchmark All-Share Index decline by 0.94 per cent to close at 104,962.96 points, deepening the bearish sentiment in the local bourse.
Stockbrokers attributed the sustained downturn to heightened volatility, with investors reacting to evolving global economic conditions despite the release of Nigeria’s February 2025 Consumer Price Index (CPI) report. While inflation moderated, the anticipated positive impact on investor sentiment failed to materialise, leading to intensified selloffs across various sectors.
As the bears-maintained control, the year-to-date return on the NGX All-Share Index weakened further to 1.98 per cent, reflecting a broader market downturn. Market breadth remained negative at 0.68 times, with 47 stocks closing lower against 32 gainers, underscoring the dominance of sellers.
Trading activity was subdued, with the total number of deals dropping by 6.15 per cent week-on-week to 57,043 transactions. Likewise, the volume and value of traded stocks slumped by 11.55 per cent and 24.33 per cent, respectively, with 2.90 billion units exchanged for N48.06 billion.
Sectoral performance was largely bearish, as five out of six major indices ended in the red. The NGX Industrial Index recorded the steepest decline of 3.39 per cent, weighed down by losses in BUA Cement, UPDCREIT, and Cutix Plc.
The NGX Insurance and Banking indices followed, shedding 2.87 per cent and 2.55 per cent, respectively, as investors exited positions in Universal Insurance, Sovereign Trust Insurance, FCMB Group, First Bank Holdings, and AccessCorp.
The NGX Oil & Gas Index and the NGX Commodity Index also closed lower by 1.08 per cent and 0.45 per cent, respectively, amid renewed sell pressure in key oil-producing companies. The Consumer Goods Index was the sole gainer, inching up by 0.06 per cent on renewed investor interest in Neimeth, NNFM, NASCON, and Dangote Sugar.
Despite the market downturn, a few stocks bucked the trend. Neimeth International Pharmaceuticals led the gainers’ chart with a 20.5 per cent increase, followed by Linkage Assurance, which rose by 13.5 per cent. Other top performers included NNFM (10 per cent), Academy Press (9.9 per cent), and Mutual Benefits Assurance (9.8 per cent). Conversely, ETranzact International suffered the worst loss, plunging by 26.2 per cent, while Livestock Feeds and Red Star Express declined by 17.5 per cent and 16.9 per cent, respectively.
The total market capitalisation of listed equities fell by 0.80 per cent to close at N65.82 trillion. According to Cowry Asset Limited, the current market conditions suggest an oversold state, presenting potential buying opportunities for investors seeking dividend-paying stocks.
“As the first quarter of 2025 draws to a close, investors are expected to reposition their portfolios for dividend season, which could spur capital appreciation and income generation,” Cowry Asset Limited stated.
Looking ahead, analysts anticipate continued corrections and portfolio adjustments as market participants assess corporate earnings and macroeconomic data. The near-term market direction will likely be influenced by global financial market trends, Central Bank of Nigeria (CBN) monetary policy decisions, and broader investor sentiment on Nigeria’s economic outlook.
