Investors Lose ₦4.9 Trillion as Stocks Slide
Investors lost over ₦4.9 trillion as profit-taking triggered a sharp decline across key sectors on the NGX.
The Nigerian stock market suffered a sharp setback last week as widespread profit-taking erased significant investor gains.
Investors on the Nigerian Exchange (NGX) lost more than ₦4.915 trillion last week as the stock market decline reversed the strong upward momentum recorded in recent months. The downturn was largely driven by sustained profit-taking across major sectors, with investors moving to lock in gains following the market’s impressive rally.
As a result, the NGX market capitalisation fell to ₦155.593 trillion on Friday from ₦160.508 trillion recorded a week earlier. The decline reflects the total reduction in the value of listed equities during the trading week.
The market’s benchmark indicator, the NGX All-Share Index (ASI), also dropped by 3.1 per cent, closing at 242,593.31 points compared to 250,385.47 points in the previous week. The performance highlighted weak market sentiment, with selling pressure dominating activities across the banking, oil and gas, industrial goods, consumer goods and insurance sectors.
Several heavyweight stocks contributed significantly to the decline. FirstHoldco lost 11.4 per cent, BUA Cement fell by 10.0 per cent, Aradel Holdings dropped 9.5 per cent, while MTN Nigeria and WAPCO also recorded notable losses. Despite the weekly decline, month-to-date and year-to-date returns remained positive at 0.5 per cent and 56.4 per cent respectively.
Trading activity, however, improved considerably. Market data showed that trading volume increased by 71.7 per cent week-on-week, while transaction value rose by 67.9 per cent.
Analysts at InvestData Consulting Limited said the market could witness mixed sentiment in the coming weeks as bargain hunters compete with investors continuing to take profits. They noted that the medium and long-term outlook for the Nigerian stock market remains positive, supported by strong company earnings, improving economic conditions and growing investor confidence.
Similarly, analysts at Cordros Capital expect market activity to remain cautious and largely range-bound in the short term due to the absence of a strong catalyst to drive buying interest.
Do you think the recent market pullback presents a buying opportunity for long-term investors?
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