Nigerian Exchange Loses N185bn As Investors Take Profits

The Nigerian Exchange (NGX) equities market capitalisation declined by N185 billion as sell-side traders took profit on stocks. The market closed bearish in 3 out of 5 trading sessions, causing the All Share Index to decline by 0.33%, settling at 97.506.87 points.

The local stock exchange lost 0.15% in November as investors grappled with a mix of profit-taking, sector rotation, and subdued optimism, stockbrokers at Cowry Asset Limited said in a note.

The benchmark NGX All-Share Index declined by 0.33% week-on-week, settling at 97,506.87 points, underscoring bearish sentiment. Investor sentiment remained cautious as market capitalisation dipped, shrinking by N184.73 billion to settle at N59.11 trillion.

Year-to-date, the NGX All-Share Index has returned 30.40%, with market capitalisation gaining 44.5% over the same period – with new listed companies stocks. According to Cowry Asset Limited, market breadth tilted negatively, with a ratio of 1.45x, as 32 stocks advanced while 46 declined, reflecting a broad-based sell-off.

Trading activity, however, presented a mixed picture, stockbrokers said. Total volume traded in the week surged by 63.6%, reaching 3.19 billion shares, and the value of trades increased by 52.9% to N54.85 billion, signaling a return to higher-value transactions.

Stock market analysts said despite these gains, the total number of deals declined by 7.09% to 45,112, pointing to a more selective trading environment. Sectoral performance painted a varied landscape.

The NGX Oil & Gas index dropped by 1.93%, while the NGX Consumer Goods and Banking indices shed 0.38% and 0.28%, respectively. Stock market analysts noted that these declines were driven by sell-offs in stocks such as SEPLAT, ETERNA, NIGERIAN BREWERIES, and GTCO.

Conversely, the NGX Insurance index emerged as a top performer, gaining 1.23%, buoyed by interest in SUNU ASSURANCE and SOVRENINS, while the NGX Industrial Goods index climbed by 0.62%, supported by LAFARGE and UPDCREIT.

Notable gainers for the week included SUNU ASSURANCE (23%), HALDANE McCALL (22%), SOVEREIGN INSURANCE (16%), NASCON (13%), and NEIMETH (11%), with a positive weekly rally. On the other hand, AUSTINLAZ led the laggards with a steep decline of 26%, followed by LASACO (17%), ETERNA (16%) and DEAP CAPITAL (10%)

“Looking ahead, we expect a mixed sentiment as the year draws to a close with the prospect of a Santa rally—a seasonal uptick driven by increased liquidity and end-of-year optimism—lingering in the minds of market participants,” Cowry Asset Limited said.