Investors Lose N532bn in One Week Amid Increasing Volatility

Kayode Tokede 

The stock market section of the Nigerian Exchange Limited (NGX) continued its downward trend last week with a loss of N532 billion, amid increasing volatility pressure on some blue-chip stocks.

As a result, the benchmark index, NGX All-Share Index declined for yet another consecutive week, falling by 0.94 percent on a week-on-week (W-o-W) basis to close at 104,962.96 basis points. 

With bears continuing to dominate market activity, the year-to-date return on the NGX ASI weakened further, moderating to 1.98 per cent. 

Consequently, the total market capitalisation of listed equities declined by N532 billion W-o-W to close at N65.820 trillion. 

This depreciation in market value further deepening the negative sentiment among equity investors.

This persistent downturn was primarily driven by investors reacting to evolving global economic conditions, despite the release of the Consumer Price Index (CPI) report for February 2025, which indicated a second consecutive month of easing inflation. 

However, these positive macroeconomic developments failed to offset the prevailing bearish sentiment, leading to an extended sell-off across various sectors of the market.

The prevailing negative market breadth and weak internal fundamentals contributed to the overall decline in investor confidence, reinforcing a cautious approach among market participants.

From a sectoral perspective, market performance was largely bearish. The NGX Consumer Goods index was the only sector to record a marginal gain, rising by 0.06 per cent week-on-week.

Conversely, the NGX Industrial index suffered the most significant losses, declining by 3.39 per cent W-o-W. Similarly, the NGX Insurance index and the NGX Banking index recorded a weekly decline of 2.87 per cent and 2.55 per cent, respectively.

Also, the NGX Oil & Gas index and the NGX Commodity index experienced losses, falling by 1.08 per cent and 0.45 per cent respectively for the week.

 The market breadth for the week was negative as 32 equities appreciated in price, 48 equities depreciated in price, while 70 equities remained unchanged. Neimeth International Pharmaceuticals led the gainers table by 20.48 per cent to close at N3.00, per share. Linkage Assurance followed with a gain of 13.49 per cent to close at N1.43, while Northern Nigerian Flour Mills (NNFM) up by 9.99 per cent to close to N79.80, per share.

On the other side, e-Tranzact International led the decliners table by 26.15 per cent to close at N4.80, per share. Livestock Feeds followed with a loss of 17.55 per cent to close at N8.41, while Red Star Express declined by 16.90 per cent to close at N4.82, per share.

Overall, a total turnover of 2.902 billion shares worth N48.064 billion in 57,044 deals was traded last week by investors on the floor of the Exchange, in contrast to a total of 3.281 billion shares valued at N63.517 billion that exchanged hands prior week in 60,782 deals.

On expectation this week, analysts at Cordros Research said it anticipated continued market volatility as investors analyse a slew of audited earnings reports and associated dividend announcements set to be released during the week.

Cowry Assets Management Limited said “the equities market is expected to experience continued corrections and portfolio adjustments, as investors digest corporate earnings reports and assess the broader impact of macroeconomic data releases.

“The direction of the market in the near term will likely be influenced by the performance of global financial markets, monetary policy decisions by the Central Bank of Nigeria (CBN), and investor sentiment surrounding Nigeria’s economic outlook. Given these dynamics, we continue to advise investors to focus on stocks with strong fundamentals