Breaking News: Trading Declines at Nigeria Stock Exchange as Stocks Go Bearish
The Nigerian Stock Exchange Limited (NGX) saw a significant decline in activity this week, with investors trading 1.183 billion shares valued at N28.868 billion across 42,397 transactions – a dramatic drop from the 7.521 billion shares worth N398.949 billion traded the previous week.
This represents a staggering 1282% decrease in transaction value, equating to a loss of N370 billion for investors.
The reduced trading volume coincides with a holiday-shortened week, as the Federal Government declared Monday and Tuesday public holidays for the Eid al-Fitr celebration. This limited trading time may have contributed to the decreased participation and subsequent market downturn.
Financial services dominated activity, accounting for 76.60% of total volume and 65.56% of total value traded, with 906.590 million shares valued at N18.926 billion. Consumer goods followed with a smaller share, while the services industry ranked third. The top three most actively traded equities – Fidelity Bank, Zenith Bank, and Universal Insurance – collectively accounted for over 22% of total volume and 20% of total value.
Overall market performance reflected the decline in trading activity. The NGX All-Share Index and Market Capitalisation both depreciated, falling by 0.14% and 0.17% to close the week at 105,511.89 and N66.147 trillion, respectively. While most indices declined, a few – including the NGX CG, NGX Banking, and NGX Pension – experienced modest gains.
The week saw fewer appreciating equities (23) compared to the previous week (43), while the number of depreciating stocks significantly increased (51 versus 36). This suggests a growing bearish sentiment amongst investors.
