Fifty-five companies listed on the Nigerian Exchange Limited recorded share price declines last week, driven by profit-taking as investors reassessed their holdings. However, 20 stocks gained in value during the same period. The NGX market capitalisation fell by over N206 billion to close at N160.519 trillion, compared with N160.725 trillion the previous week, according to NGX data. The NGX All Share Index, or ASI, also declined to 247,222.27 points from 247,539.73 points.
The market correction reflected investors reassessing their portfolios after substantial gains recorded earlier in the year. Although some stocks attracted buying interest, the recovery was not broad-based enough to offset losses in major stocks, leaving overall market sentiment negative. Analysts noted that selected equities performed positively, but the weakness in influential stocks prevented the market from posting gains.
International crude prices added to investor caution, climbing sharply amid escalating geopolitical tensions in the Middle East. While higher crude prices could support Nigeria's export earnings and government revenue, analysts highlighted concerns about broader implications for domestic fuel costs, inflation and business expenses. Trading activity increased last week, with 2.024 billion shares worth N110.773 billion exchanged in 173,113 deals, compared with 1.659 billion shares valued at N98.088 billion the previous week.
The Financial Services Industry dominated trading activity by volume, accounting for 54.89 per cent of total equity turnover volume and 48.66 per cent of total value, with 1.111 billion shares worth N53.908 billion traded. The Consumer Goods Industry followed with 394.039 million shares worth N9.811 billion, while the Agriculture Industry came third with 147.170 million shares worth N2.821 billion. Analysts at InvestData Consulting Limited said the near-term outlook remained cautious, with investors balancing the need to preserve gains against opportunities in selected stocks. They warned that continued selling pressure in banking, energy and other influential stocks could prolong market consolidation, with further weakness in large-cap stocks potentially continuing to weigh on the benchmark.