Market Wrap: NGX Shrinks as Equity Investors Lose N964b

The Nigerian Exchange (NGX) shrank as equity investors lost about N964 billion in the local bourse last week. For four out of five trading sessions, bearish sentiment took centre stage, snapping weeks of sustained bullish momentum as investors locked in gains and rebalanced portfolios ahead of the month’s close.
Stock market analysts said the pullback came against the backdrop of mixed third-quarter earnings, particularly from the banking sector, which tempered investor optimism.
The Nigerian Exchange benchmark index declined by 0.98% week-on-week to close at 154,126.45 points, while the market capitalisation fell in tandem by N963.94 billion to settle at N97.83 trillion.
Investor sentiment remained largely tepid throughout the week, according to Cowry Asset Limited, reflected in the market breadth, which closed negative at 0.41x, as 29 stocks advanced while 70 declined.
Cowry Asset told investors in a note that the NGX trades within a corrective corridor for the short term, with the All-Share Index (ASI) hovering below its 20-day and 50-day moving averages, which reinforces short-term bearish momentum.
Interestingly, the Relative Strength Index (RSI) is inching toward the oversold region, hinting that some fundamentally strong, large-cap names may soon present attractive re-entry opportunities for medium-term investors, the investment firm said.
Despite the negative breadth, trading activity picked up pace, showing that investors were still active — albeit selective.
The weekly traded volume rose sharply by 102.7% week-on-week to 7.49 billion units, while value traded expanded 12.16% to N145.44 billion.
Similarly, the number of deals increased 7.85% to 159,598 trades, pointing to some rotational positioning within portfolios. Across the sectoral landscape, the mood was largely bearish, as four of the six key sectors under our watch finished in the red.
The Insurance, Consumer Goods, Banking, and Industrial Goods sectors were all pressured by profit-taking and weak sentiment in bellwether counters.
Top decliners include CADBURY, ZENITHBANK, DANGSUGAR, FIDELITYBNK, NIGERIAN BREWERIES, LAFARGE AFRICA, CORONATION, CORNERSTONE, DANGCEM, and ARADEL.
However, the Oil & Gas (+0.30%) and Commodity (+0.15%) indices managed to buck the trend, supported by gains in OKOMUOIL and OANDO, as investors continued to seek alpha played in select energy and commodity stocks amid the broad market weakness.
On the performance board, ASO SAVINGS (+56.1%), JULIUS BERGER (+13.3%), OANDO (+11.9%), BERGER PAINTS (+9.3%), and ETI (+8.2%) emerged as the week’s top gainers, drawing renewed investor attention.
Conversely, OMATEK (-21.9%), JOHNHOLT (-16.9%), CAVERTON (-16.2%), NAHCO (-15.9%), and ETRANZACT (- 15.3%) led the laggards’ chart, reflecting price corrections and fading confidence in the short term.
“Looking ahead, we expect the market to trade mixed in the near term, with direction to be shaped by investor reaction to outcome of fixed-income yields, fund rotation into safer assets, and the ongoing earnings season.
“In our view, the market currently needs a strong catalyst—possibly in the form of improved macro indicators or stronger-than-expected corporate results—to reignite a bullish spark and restore positive sentiment on the NGX.
“We continue to advise investors to take positions in fundamentally sound stocks with strong earnings power and returns,” Cowry Asset Managers said in the equities update.