The Nigerian Exchange Limited (NGX) closed last week on a bearish note, with the All-Share Index declining 0.1% to 105,511.89 points as sell-offs hit major stocks. Market capitalization also dropped by ₦8 billion to ₦66.147 trillion, reflecting cautious investor sentiment.
Key sectoral performances showed broad declines:
- Insurance Index fell 4.1%
- Oil & Gas dropped 1.2%
- Consumer Goods slipped 0.9%
- Industrial Goods dipped 0.2%
Only the Banking Index posted modest gains of 0.2%
The downturn was driven by significant sell pressure on blue-chip stocks, with Oando plunging 13.1% and First Bank Holdings losing 7.6%. Trading activity remained subdued due to holiday-shortened sessions, witnessing an 84.4% weekly volume decline and 92.8% drop in transaction value.
Analysts attribute the cautious mood to multiple factors:
1) Escalating global trade tensions following new U.S. tariff hikes
2) Ongoing domestic economic reforms
3) Anticipation of upcoming bank earnings reports
“Market players are adopting a wait-and-see approach,” noted Cordros Research analysts, though they suggested potential bargain opportunities from recent dividend declarations. InvestData Consulting warned the trade war could exacerbate market volatility, urging policymakers to reassess fiscal strategies.
With the Year-to-Date return moderating to 2.5%, experts predict continued mixed sentiment as investors digest earnings reports and reposition portfolios. Attention remains focused on upcoming financial disclosures from major banking stocks, which could influence near-term market direction.
