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Investors Lose N847 Billion As Profit-Taking, Selloffs Hit Nigerian Stock Market
The Exchange, plummeted from N55.978 trillion at the start of the week to N55.131 trillion by Friday’s close.
Ikeja, Lagos State- Last week, investors on the Nigerian Exchange Limited (NGX) suffered a substantial setback, with losses amounting to N847 billion due to aggressive profit-taking and widespread selloffs.
This downturn highlights increasing market concerns as investors sought to secure gains amid economic uncertainties.
The NGX market capitalization, reflecting the total value of all investments on the Exchange, plummeted from N55.978 trillion at the start of the week to N55.131 trillion by Friday’s close.
The NGX All Share Index (ASI), a major market indicator, fell by 1.5% to 97,100.31 points on Friday, down from 98,592.12 points the previous week.
Profit-taking across key market sectors impacted the NGX, offering investors opportunities to acquire value stocks at discounted rates.
In corporate news, more companies have informed the Exchange about their Annual General Meetings, with FBN Holdings recently announcing theirs. Airtel Africa also continues to provide updates on its share buyback program.
Analysts suggest that investors should focus on companies with consistent dividend payments, strong fundamentals, and growth prospects to support earnings growth across market cycles.
Market analysis indicates Month-to-Date and Year-to-Date returns at -0.7% and +29.9%, respectively. Trading activity decreased, with trading volume and value falling by 24.1% and 1.4% Week on Week. Sector performance was mixed: the Oil & Gas Index gained 5.3%, the Insurance Index increased by 0.8%, and the Consumer Goods Index rose by 0.4%. Conversely, the Industrial Goods Index dropped by 5.2% and the Banking Index fell by 2.3%.
Looking ahead, analysts at Cordros Research predict that bearish sentiments will persist, as investors remain cautious with a weak appetite for equities.
They also note that macroeconomic developments and upcoming earnings season corporate actions will likely influence investor sentiment in the near term.
