The Nigerian Exchange (NGX) extended its bearish run this week, with the All-Share Index (ASI) slipping 0.55% to close at 105,955.13, down from 106,538.60 the previous week. Market capitalization followed suit, shedding ₦1.186 trillion to settle at ₦66.352 trillion, as investors rebalanced portfolios ahead of dividend adjustments and fresh bond listings.
Equity Market: Financial Services Sector Drives Turnover Surge
Trading activity defied the broader bearish trend, with total equity turnover soaring 80.5% to 3.28 billion shares worth ₦63.52 billion. The Financial Services sector dominated, contributing 70.17% of volume (2.3 billion shares) and 39.38% of value (₦25.01 billion). Sovereign Trust Insurance, Champion Breweries, and Jaiz Bank emerged as the top-traded stocks, accounting for nearly half of total volume.
“This week’s activity reflects strategic repositioning,” noted a market analyst. “Investors are pivoting to defensive sectors like Insurance and Consumer Goods, which saw marginal gains despite the broader decline.”
Sectoral Performance: Insurance Shines, Growth Stocks Tumble
While most indices closed lower, the NGX Insurance Index (+0.89%) and NGX MERI Growth Index (+0.89%) bucked the trend. Conversely, the NGX Growth Index (-5.90%) and NGX Oil/Gas (-1.15%) lagged, pressured by sell-offs in Conoil (-10.0%) and Neimeth Pharmaceuticals (-17.0%).
Top Gainers:
– Livestock Feeds (+22.16%): A surprise rally fuelled by speculative retail interest.
– Caverton Offshore (+15.38%): Boosted by renewed contracts in the energy sector.
– FTN Cocoa Processors (+14.20%): Benefiting from global cocoa price hikes.
Top Decliners:
– Neimeth Pharmaceuticals (-17.00%): Profit-taking after a prolonged rally.
– Conoil (-10.00%): Weaker Q1 earnings projections.
Bonds & ETPs: Government Debt Listings Offset Weak Demand
The Federal Government’s supplementary bond listings dominated fixed-income activity, with ₦72.99 billion traded across 63 deals. The 19.30% FGN APR 2029 bond saw an additional 305.36 million units listed, underscoring the government’s borrowing push. Meanwhile, Exchange Traded Products (ETPs) recorded muted activity, with VETGOODS leading at 28,212 units traded.
Dividend Adjustments & Retail Investor Implications
Dividend-paying stocks like Geregu Power (₦8.50 per share) and Nigerian Exchange Group (₦2.00 per share) adjusted ex-prices, offering short-term opportunities for income-focused investors. For retail participants, however, the market’s volatility poses risks. “Smaller investors are increasingly sidelined by institutional moves,” said a Lagos-based trader. “Defensive stocks and bonds are safer havens.”
Mixed Fortunes for Retail Investors
While Livestock Feeds’ 22% surge delighted speculative traders, the steep drop in Neimeth Pharmaceuticals (-17%) and Conoil (-10%) left many retail holders nursing losses. For market newcomer Adebisi Oluwaseun, the week was a lesson in patience: “I bought Conoil last month, hoping for dividends. Now I’m stuck deciding whether to hold or cut losses.”
Outlook
With the NGX-ASI down 1.73% month-to-date, analysts advise caution. “Focus on sectors with earnings resilience, like Insurance and Consumer Goods,” urged GTI Research in a note. The supplementary bond listings also present opportunities for fixed-income portfolios, particularly with rising yields on longer-dated securities.
The NGX’s decline mirrors global risk-off sentiment, but strategic rotations and government debt issuances offer silver linings. As one institutional investor quipped, “In turbulent markets, the prepared thrive.”
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