The Nigerian equities market continued its downward trajectory, with investors witnessing a staggering loss of N1.99 trillion in market capitalization over the past week. The persistent negative sentiment prevailed as the All-Share Index and market capitalization declined by 3.44 per cent week-on-week, settling at 102,088.30 points and N55.86 trillion, respectively.
The bearish trend in the equity market was primarily attributed to concerns over higher bond yields, which dampened investor confidence. The anticipation of increased yields in the fixed-income market prompted portfolio rebalancing activities among investors, coupled with cautious sentiment ahead of corporate earnings releases and the Monetary Policy Committee meeting scheduled for Monday and Tuesday.
Across various sectors, performance remained largely subdued, with the insurance and industrial goods sectors experiencing the most significant declines, shedding 8.91 per cent and 7.94 per cent, respectively, erasing gains from the previous week. The banking sector also recorded a downturn of 2.10 per cent due to a sell-off in key banking stocks.
In contrast, the consumer goods and oil & gas sectors witnessed marginal gains of 2.01 per cent and 0.01 per cent, respectively, as investors showed renewed interest in these segments.
Trading activities throughout the week reflected waning sentiments, with a total turnover of 1.377 billion shares valued at N31.58 billion traded in 42,040 deals, marking a decline from the previous week’s figures.
The financial services industry dominated trading activities by volume, contributing 69.77 per cent to the total equity turnover volume. Meanwhile, conglomerates and oil and gas sectors followed closely in terms of turnover.
Among the top equities traded, Guaranty Trust Holding Company Plc, FBNHoldings Plc, and Transnational Corporation Plc witnessed significant trading volumes, accounting for a substantial portion of the total equity turnover.
Despite the overall downturn, some equities bucked the trend and recorded gains, with Juli Plc, FBN Holdings, Geregu Power, and BUA Foods emerging as top performers for the week.
Conversely, Morison Industries Plc, Consolidated Hallmark Holdings Plc, and Sterling Financial Holdings Company Plc were among the laggards, witnessing notable declines in their share prices.
Looking ahead, market participants anticipate further corporate releases, which are expected to drive additional portfolio rebalancing activities in the coming week, as investors navigate the evolving market dynamics.
