The Nigerian Exchange experienced a significant downturn during the reviewed week, shedding N421 billion in market capitalization, a stark contrast to the previous week’s robust gains of N1.83 trillion. This bearish trend drove the All-Share Index (ASI) down by 0.62 percent, settling at 107,821.39 points, reversing the prior week’s two percent surge to 108,053.95 points. This reversal underscores the market’s volatility and sensitivity to prevailing economic conditions and investor sentiment. The decline signifies a considerable erosion of value for investors and suggests a growing cautiousness within the market. The overall market sentiment shifted from optimism to apprehension, impacting investor behavior and trading activity.
The downturn was further characterized by a noticeable slowdown in trading activity. Total traded shares fell to 1.85 billion, down from 2 billion in the preceding week, indicating a decrease in investor participation. Similarly, the value of traded shares reached N51.39 billion across 63,090 deals, a slight increase from N49.49 billion in 70,853 deals the previous week. Though the value increased marginally, the reduction in the number of deals suggests a consolidation of trading, possibly reflecting larger transactions by institutional investors amidst the bearish backdrop. This decline in overall trading activity reinforces the narrative of a market grappling with uncertainty and potentially awaiting clearer economic signals.
Sectoral performance was mixed, with the financial services industry dominating trading activity. The sector accounted for 70.13 percent of the total traded volume, with 1.3 billion shares exchanged, and 52.38 percent of the total value, amounting to N26.91 billion across 29,140 deals. This dominance underscores the continued importance of this sector within the Nigerian economy and its significant contribution to overall market activity. Following behind were the services and consumer goods industries, showcasing the breadth of the Nigerian Exchange. The services industry traded 129.44 million shares worth N719.22 million, while the consumer goods sector saw 116.70 million shares valued at N4.19 billion change hands.
Zenith Bank Plc, FCMB Group Plc, and Access Holdings Plc emerged as the most actively traded stocks, collectively accounting for 29.21 percent of the total traded volume and 32.16 percent of the total value. These three financial institutions traded 539.77 million shares worth N16.53 billion, highlighting the concentration of trading activity within the financial services sector. Their prominence in trading volume and value further solidifies the sector’s influence on the overall market performance. The significant trading volume of these stocks suggests strong investor interest, potentially driven by various factors including earnings expectations, dividend payouts, and broader economic outlook.
While the overall market trend was bearish, some indices managed to buck the trend and record gains. The AseM, Oil & Gas, Lotus II, Sovereign Bond, and Commodity indices registered marginal increases of 0.04 percent, 0.60 percent, 0.33 percent, 0.81 percent, and 0.53 percent, respectively. This nuanced performance underscores the diversity within the Nigerian Exchange and the varying influences impacting different sectors. The positive performance of these indices suggests potential pockets of resilience within the market, possibly driven by sector-specific factors or investor confidence in specific segments. However, these marginal gains were overshadowed by the broader market decline, indicating a pervasive bearish sentiment.
The week concluded with a decline in the number of gainers and a rise in the number of losers, further reflecting the prevailing negative sentiment. Only 27 stocks recorded gains, down from 28 the previous week, while 60 stocks declined, up from 58. This shift in the balance between gainers and losers reinforces the narrative of a market experiencing a broad-based decline. PZ Cussons Nigeria Plc, Caverton Offshore Support Group Plc, and Livestock Feeds Plc led the gainers, while Sunu Assurances Nigeria Plc, Eunisell Interlinked Plc, and Learn Africa Plc were the top losers. These individual stock performances highlight the varied fortunes within the market, with some companies defying the downward trend while others succumbed to selling pressure. The notable price swings in these stocks suggest company-specific news or events that may have influenced investor decisions.
