54 firms drag down equities’ capitalisation by N1.58trn

By Peter Egwuatu

At the backdrop of profit taking in 54 companies’ stocks the stock market closed at the weekend shaving off N1.582 trillion from its capitalization. The market capitalisation closed at N161.26 trillion, down from N162.842 trillion the previous week.

Consequently, the Nigerian Exchange Limited, NGX, All Share Index, ASI, declined by 0.97% to close at 248,363.55 points from 250,808.27 points.

Analysts noted that the session reinforced the cautious tone that has gradually emerged in the domestic equities market following the strong rally recorded over the year.

Investors appeared increasingly focused on securing accumulated gains, particularly in stocks that have experienced significant price appreciation, resulting in broader pressure across key market segments.

Meanwhile, further activities showed that a total turnover of 2.715 billion shares worth N158.280 billion in 209,986 deals was traded last week by investors on the floor of the Exchange, in contrast to a total of 3.166 billion shares valued at N155.023 billion that exchanged hands the previous week in 206,662 deals.

The Financial Services Industry (measured by volume) led the activity chart with 2.005 billion shares valued at N82.924 billion traded in 94,483 deals: thus contributing 73.84% and 52.39% to the total equity turnover volume and value respectively. 

The Consumer Goods Industry followed with 152.345 million shares worth N11.425 billion in 20,926 deals. Third place was the ICT Industry, with a turnover of 117.296 million shares worth N15.256 billion in 22,556 deals.

Trading in the top three equities, namely Access Holdings Plc, Zenith Bank Plc and United Bank for Africa Plc (measured by volume), accounted for 1.020 billion shares worth N50.520 billion in 29,382 deals, contributing 37.56% and 31.92% to the total equity turnover volume and value respectively.

Commenting on market performance and outlook, analysts at Invest Data Consulting Limited stated: “The latest decline suggests that investors are becoming more selective as they reassess valuations and the near-term earnings outlook of listed companies. While the market continues to record a strong year-to-date return, the recent weakness indicates that some investors are becoming less willing to chase prices at elevated levels.

“The short-term outlook remains cautious as investors continue to lock in profits and reassess the sustainability of the market rally. Further weakness in large-cap stocks could keep the ASI under pressure in the next few sessions, particularly if market breadth remains negative.”