Nigerian stocks ended the week in bear territory, driven by significant profit-taking activities that impacted key market movers. The All-Share Index (ASI) fell by 1.2%, closing at 95,973.45 points, primarily due to heavy sell-offs in major stocks such as Dangote Cement (DANGCEM) and Transcorp Hotels (TRANSCOHOT), which dropped by 10.0% and 6.3%, respectively. This decline led the Month-to-Date (MTD) and Year-to-Date (YTD) returns to settle at -1.8% and +28.4%, respectively.
Market activity showed a mixed picture throughout the week. Total trading volume surged by 177.1%, indicating a flurry of transactions, yet the total trading value decreased by 21.9% week-on-week (w/w), suggesting a cautious approach among investors.
Across the various sectors covered, performance was uneven. The Oil and Gas sector led the gainers with a 3.5% increase, followed by the Insurance sector at 1.9%, and the Banking sector at 0.4%. On the other hand, the Industrial Goods sector suffered a steep decline of 4.9%, and the Consumer Goods sector dipped by 1.4%, reflecting varied investor sentiment across different segments of the market.
Looking ahead, the absence of a strong near-term catalyst is expected to weigh on overall market sentiment, potentially leading to further negative performances. In the medium term, investors’ decisions will likely be swayed by developments in the macroeconomic landscape, including inflation trends, fiscal policy changes, and movements in yields within the fixed-income market.
As Nigerian stocks navigate these uncertain waters, the market’s trajectory will depend heavily on how these external factors play out, with cautious optimism likely to characterize investor behavior in the coming weeks.
