Nigerian investors lost a significant N784 billion last week as selloffs across highly capitalized stocks kept the market in negative territory. The decline comes despite some recoveries in the banking sector, which had previously contributed to weak performance.
Analysts had anticipated profit-taking following the suspension of the Dangote Foods merger and ongoing market reactions to banking sector recapitalization. The Nigerian Exchange Limited (NGX) All Share Index (ASI) fell by 1.39% to 98,152.91 points. Losses were driven by significant declines in MTN Nigeria Communication Plc (-9.8%), FBN Holdings Plc (-16.3%), and Nestle Nigeria Plc (-11.6%).
Amid the decline, some banking stocks showed positive movement, with Guaranty Trust Company (GTCo) Plc rising 6%, Stanbic IBTC up 3.6%, and Zenith Bank Plc gaining 1.6%. Market capitalization also fell to N55.512 trillion, down 1.39% from N56.296 trillion.
Sectoral analysis highlighted the banking sector (-3.1%), oil and gas sector (-1.4%), and consumer goods sector (-1.2%) as the primary decliners. The industrial goods sector saw minimal growth of 0.4%, while the insurance sector remained unchanged.
Trading volume increased by 15.2% to 1.839 billion units, with trading value rising 6.0% to N34.25 billion.
Cordros Capital analysts suggest the negative trend may continue short-term without positive catalysts, but also note potential for recovery due to favorable entry points on some stocks, especially as earnings releases are expected.
