Onome Amuge
Persistent profit-taking and weakening risk appetite dragged the NGX All-Share Index lower for another week, erasing nearly N70 billion in investor wealth and intensifying pressure on key financial stocks. The continued downturn, which unfolded across multiple trading sessions, has amplified concerns that the domestic bourse may be slipping into a deeper corrective phase after months of outsized gains.
The benchmark NGX All-Share Index (ASI) slipped 0.08 per cent to 143,614.61 points, reducing the year-to-date return to 39.53 per cent, a notable comedown from the more robust performance posted earlier in the year. Total market capitalisation fell to N91.35 trillion, down by an N68.7 billion week-on-week, as selling pressure intensified across most major sectors.
Although activity levels were unusually strong, sentiment remained decidedly bearish. Market breadth closed negative at 17 gainers against 26 losers, underscoring the breadth of the downturn. The number of deals rose by 26.65 per cent to 23,864, while traded volume increased 4.04 per cent to 683.41 million units. Traded value was up 10.75 per cent, reaching N28.37 billion.
Monday’s trading session, which set the tone for the week, saw equities shed another N68 billion as several mid-tier financial stocks slipped sharply. The ASI declined marginally from 143,722.62 points to 143,614.61 points, while equity capitalisation dipped from N91.4 trillion to N91.3 trillion.
Across the week, the heaviest losses were concentrated among financial services companies, with Prestige Assurance, Sterling Nigeria (formerly Sterling Bank), Wapic Insurance (Wapic Lafarge), and NPF Microfinance Bank, which registered declines in earlier sessions—driving the downward momentum. Prestige recorded a 7.48 per cent drop to close at N1.36, while Sterling Nigeria shed 6.94 per cent, ending the day at N6.70. Wapic fell 6.18 per cent to N2.43 per share.
Other high-profile laggards included DEAP Capital and Omatek, both of which featured prominently on the losers’ chart in the broader weekly performance. The decline in insurance and banking stocks comes amid heightened sector-wide volatility following ongoing recapitalisation discussions and concerns around rising operating costs in Nigeria’s inflationary macroeconomic environment.
Sectoral indices reflected the market softness. The NGX Banking Index fell 0.45 per cent, a decline analysts attributed to selloffs in Sterling, GTCO, Fidelity Bank, and other mid-cap lenders. The Insurance Index dropped 0.79 per cent, weighed down by Prestige, Wapic and AIICO. Consumer Goods slipped 0.02 per cent, and Oil & Gas fell 0.17 per cent. Industrial Goods and the Commodity indices bucked the trend but only managed to close flat, offering little support to the broader market.
Investors showed heightened trading activity in large-capitalisation banks. Guaranty Trust Holding Company (GTCO) dominated the volume chart with 203mn shares traded across 973 deals, followed by Fidelity Bank, which traded 131 million shares in 588 deals. Japaul Gold, one of the market’s more volatile retail-driven stocks, recorded 68 million shares in 181 deals. On the value axis, GTCO retained its lead with N17.2 billion worth of transactions, while Fidelity traded N2.5 billion and Unilever Nigeria posted N1 billion across 143 deals.
Not all corners of the market were gloomy. A handful of small-cap and mid-tier stocks posted strong gains. E-Tranzact, International Energy Insurance (INTENEGINS), McNichols, C&I Leasing, and UPDC led the gainers’ chart. E-Tranzact rose 9.06 per cent to N14.45; INTENEGINS gained 8.49 per cent to N2.30; McNichols appreciated 7 per cent to N2.75; while C&I Leasing and UPDC also recorded positive momentum supported by renewed retail interest.
