The Nigerian stock market experienced a downturn during a recent week, shedding N476 billion in value as investor activity cooled. This decline contrasts with the previous week’s positive performance, marking a shift in market sentiment. A total of 1.818 billion shares, valued at N47.226 billion, were traded across 64,222 deals, slightly down from the previous week’s figures of 1.848 billion shares worth N51.387 billion exchanged in 63,090 deals. The market capitalization, representing the total value of listed companies, contracted by 0.71 percent, settling at N66.717 trillion. Mirroring this downturn, the All-Share Index, a key indicator of overall market performance, dipped by 1.19 percent, closing at 106,538.60 points. This broad decline impacted most major indices, suggesting a widespread profit-taking trend among investors.
Sectoral analysis reveals the continued dominance of the Financial Services Industry in trading activity. This sector accounted for a significant portion of the total market turnover, with 1.260 billion shares worth N27.817 billion traded across 29,800 deals. This represents 69.31 percent of the total traded volume and 58.90 percent of the total traded value, underscoring the sector’s influence on overall market dynamics. Trailing behind were the Consumer Goods and Services industries. The Consumer Goods sector saw 123.336 million shares worth N3.069 billion change hands in 7,793 deals, while the Services sector recorded 118.931 million shares valued at N832.602 million traded in 3,730 deals. This suggests a more moderate level of investor engagement in these sectors compared to Financial Services.
Further examination of trading activity reveals that Zenith Bank Plc, Fidelity Bank Plc, and Access Holdings Plc emerged as the most actively traded stocks. These three financial giants contributed significantly to the week’s trading volume, accounting for 451.558 million shares worth N13.583 billion across 10,055 deals. Their combined activity represented 24.84 percent of the total turnover volume and 28.76 percent of the total market value, highlighting their significant influence on market movements. This concentration of trading in a few key stocks suggests that investor interest was focused on specific opportunities within the financial sector.
Beyond equities, trading activity in Exchange Traded Products (ETPs) and bonds also experienced notable changes. ETP trading volume decreased, with 56,372 units worth N6.280 million traded in 99 deals, compared to 42,786 units worth N16.133 million in the previous week. Similarly, the bond market experienced a significant drop in trading activity, with only 73,802 units valued at N75.768 million traded across 31 deals. This contrasts sharply with the preceding week’s figures of 346,089 units worth N351.766 million traded in 34 deals. These declines in ETP and bond trading suggest a broader shift in investor preference away from these asset classes.
Market breadth, a measure of overall market sentiment based on the number of advancing and declining stocks, presented a mixed picture. While the number of appreciating equities increased to 30 from the previous week’s 27, the number of declining equities remained relatively high at 58, only slightly down from 60 the week before. The number of unchanged stocks also remained largely stable at 62, compared to 63 the previous week. This mixed performance indicates a degree of uncertainty in the market, with some sectors or individual stocks experiencing gains while others face declines. The overall negative trend, however, suggests a prevailing cautious sentiment among investors.
Despite the general market downturn, pockets of positive performance were observed in specific segments. The ASeM (Alternative Securities Market) and Commodity indices bucked the trend, posting modest gains of 0.04 percent and 0.19 percent, respectively. However, these positive movements were overshadowed by the broader market decline, as all other indices closed lower. This overall negative performance reflects a combination of profit-taking by investors and a generally weak sentiment towards the equities market. The previous month’s performance, with the Nigerian Exchange recording its first gain in March driven by renewed investor interest and a N216 billion increase in market capitalization, further highlights the volatile nature of the market and the potential for rapid shifts in investor confidence. This emphasizes the need for careful monitoring of market trends and prudent investment strategies.
