The Nigerian stock exchange closed last week in negative territory, with profit taking in major holdings cutting market capitalisation by N210 billion. The NGX All-Share Index fell 0.97 per cent week-on-week to 247,222.27 basis points, while market capitalisation declined N206 billion to N160.52 trillion, according to NGX data. The year-to-date return moderated to 58.87 per cent as selling pressure dominated proceedings.
Weak investor sentiment was reflected in market breadth, which closed negative with only 20 gainers against 55 decliners. ABC Transport led the gainers, rising 20.7 per cent to N7.30 per share, while AVA Capital Partners gained 17.7 per cent to close at N7.30 per share. Caverton Offshore Support Group appreciated 17.1 per cent to N4.80 per share. On the losing side, Omatek Ventures shed 12.5 per cent to N1.40 per share, University Press fell 12.1 per cent to N4.35 per share, and Regency Alliance Insurance lost 11.3 per cent to 71 kobo per share.
Trading activity increased from the previous week, with 2.024 billion shares worth N110.773 billion changing hands in 173,113 deals, compared with 1.659 billion shares valued at N98.088 billion in 184,632 deals the week before. The Financial Services Industry dominated activity with 1.111 billion shares valued at N53.908 billion traded in 81,787 deals, accounting for 54.89 per cent of total volume and 48.66 per cent of total value. Consumer Goods followed with 394.039 million shares worth N9.811 billion, while Agriculture recorded 147.170 million shares worth N2.821 billion.
Analysts said the market direction going forward will be shaped by corporate earnings expectations, valuation levels, dividend prospects and broader investor sentiment amid evolving macroeconomic conditions. Cowry Assets Management noted that the negative market breadth suggests investors may maintain a cautious, selective approach, favouring fundamentally strong stocks with attractive valuations and consistent dividend potential. The firm added that continued price adjustments could create opportunities for bargain-hunting in quality equities, though any recovery's sustainability depends on improved investor confidence and renewed demand across key sectors. Cordjos Securities said trading is expected to remain cautious this week as the first batch of earnings releases begins hitting the exchange, with investor focus likely to centre on earnings quality and forward guidance.
For savers and investors, the falls in stock prices mean existing equity holdings have lost value, though weak sentiment may eventually create entry points for those seeking to buy quality stocks at lower valuations.