NGX Loses N1.58trn as Investors Sell Off Stocks Ahead of Q3 Earnings

The Nigerian Exchange (NGX) recorded a N1.58 trillion week-on-week decline in market capitalisation as weak buying interest and renewed sell-offs in selected stocks weighed on equities ahead of third-quarter (Q3) earnings releases.

The local bourse closed the week in negative territory, reflecting subdued investor sentiment and selling pressure across several sectors of the market.

The All-Share Index (ASI), the benchmark indicator of the Nigerian equities market, fell by 0.97 per cent week-on-week to close at 248,363.55 points. Market capitalisation also declined by approximately N1.58 trillion to N161.26 trillion.

Despite the downturn, the market's year-to-date (YTD) return moderated to 59.60 per cent, remaining ahead of the country's consumer price index, a key measure of inflation.

Market sentiment remained weak, with market breadth closing negative at 54 decliners against 23 advancers. This translated to a breadth ratio of 0.43x, indicating that declining stocks significantly outnumbered those that recorded gains.

Trading activity presented a mixed picture during the week. According to market data, the number of deals and transaction value increased by 1.65 per cent and 2.14 per cent week-on-week, respectively, while trading volume fell by 14.22 per cent.

Investors exchanged 2.72 billion shares valued at N158.42 billion in 210,385 deals during the period, according to Cowry Asset Securities Limited's market update.

Sectoral performance on the Nigerian Exchange was largely negative, with four of the five major sectors recording losses amid widespread selling pressure.

The performance highlighted persistent investor caution, particularly in the oil and gas and banking sectors. Meanwhile, the marginal gain recorded by industrial goods stocks suggested selective buying interest rather than a broad-based market recovery.

The oil and gas sector led the market's decline, shedding 3.85 per cent as losses in ARADEL and ETERNA outweighed a 4.00 per cent gain in OANDO.

The banking sector followed, falling by 2.64 per cent, driven by losses in FIDELITYBK, FIRSTHOLDCO and GTCO, despite a marginal gain in ZENITHBANK.

The insurance sector declined by 1.74 per cent, as losses in MANSARD and CONHALLPLC outweighed significant gains in GUINEAINS and REGALINS.

Similarly, the consumer goods sector shed 0.58 per cent, pressured by declines in NESTLE, HONYFLOUR and UNILEVER. Gains in MULTITREX and DANGSUGAR provided some support but were insufficient to reverse the sector's negative performance.

In contrast, industrial goods was the only sector to close in positive territory, edging up by 0.02 per cent. Strong performances by TRIPPLEG and CAP offset a decline in CUTIX, allowing the sector to record a marginal gain despite the broader market downturn.