The Nigerian Exchange Limited saw 55 listed companies experience share price declines last week, driven by profit-taking among investors, though 20 stocks gained ground during the period. The NGX market capitalisation fell by more than 206 billion naira to close at 160.519 trillion naira from 160.725 trillion naira the previous week, according to NGX data. The NGX All Share Index declined to 247,222.27 points from 247,539.73 points.
The market's weakness reflected broader correction activity as investors reassessed their portfolios following substantial gains recorded earlier in the year. While some stocks attracted buying interest, the recovery was not broad enough to offset losses in major holdings, leaving overall market sentiment negative. Rising international oil prices, which climbed sharply amid escalating geopolitical tensions in the Middle East, also weighed on sentiment during the period.
Trading activity increased from the previous week, with 2.024 billion shares worth 110.773 billion naira exchanged in 173,113 deals, compared with 1.659 billion shares valued at 98.088 billion naira traded in 184,632 deals the week before. The Financial Services Industry led activity by volume, accounting for 54.89 percent of total equity turnover with 1.111 billion shares valued at 53.908 billion naira in 81,787 deals. The Consumer Goods Industry followed with 394.039 million shares worth 9.811 billion naira, while Agriculture recorded a turnover of 147.170 million shares worth 2.821 billion naira.
InvestData Consulting Limited stated that the near-term outlook for Nigerian equities remains cautious as investors balance preserving gains against opportunities in selected stocks. The analysts noted that the market's substantial year-to-date appreciation provides context for recent weakness, as some participants reduce exposure after strong earlier returns. Continued selling pressure in banking, energy and other major stocks could extend the market's consolidation phase, they added.
For savers and investors in Nigeria, the decline in stock valuations reduces the paper value of equity holdings, though higher oil prices could eventually support economic conditions if government revenue gains materialise.