Market Capitalisation Down N210bn WoW on Profit-taking in Aradel, Others

Kayode Tokede

The Nigerian stock market closed last week on a negative note, as sustained profit taking in Aradel Holdings, others dragged the market capitalisation low by N210bn.

As the market capitalisation fell by N206 billion week-on-week (W-o-W) to N160.52 trillion, the Nigerian Exchange Limited All-Share Index (NGX ASI) dropped by 0.97 per cent W-o-W to close at 247,222.27 basis points. Consequently, the market’s year-to-date (YTD) return moderated to 58.87 per cent.

Investor sentiment remained weak, as market breadth closed negative, with 20 gainers against 55 decliners, reflecting the dominance of declining stocks.

ABC Transport Plc led the gainers, appreciating by 20.7 per cent to close at N7.30 per share. AVA Capital Partners Limited followed with a 17.7 per cent gain to close at N7.30 per share, while Caverton Offshore Support Group Plc rose by 17.1 per cent to close at N4.80 per share.

On the losing side, Omatek Ventures Plc recorded the steepest decline, shedding 12.5 per cent to close at N1.40 per share. University Press Plc followed with a 12.1 per cent loss to close at N4.35 per share, while Regency Alliance Insurance Plc depreciated by 11.3 per cent to close at 71 kobo per share.

Overall, a total turnover of 2.024 billion shares worth N110.773 billion in 173,113 deals was traded last week by investors on the floor of the Exchange, in contrast to a total of 1.659 billion shares valued at N98.088 billion that exchanged hands previous week in 184,632 deals.

The Financial Services Industry (measured by volume) led the activity chart with 1.111 billion shares valued at N53.908 billion traded in 81,787 deals, contributing 54.89 per cent and 48.66 per cent to the total equity turnover volume and value respectively.

The Consumer Goods Industry followed with 394.039 million shares worth N9.811 billion in 17,912 deals, while the Agriculture Industry pulled a turnover of 147.170 million shares worth N2.821 billion in 7,462 deals.

Trading in the top equities, Multitrex Integrated Foods, Zenith Bank, and Livestock Feeds accounted for 521.565 million shares worth N19.093 billion in 16,487 deals, contributing 25.76 per cent and 17.24 per cent to the total equity turnover volume and value respectively.

However, the Nigerian stock market direction is likely to be shaped by corporate earnings expectations, valuation levels, dividend prospects and broader investor sentiment amid evolving macroeconomic conditions, analysts said.

They note that while continued price adjustments could create opportunities for bargain-hunting in quality equities, the sustainability of any recovery will depend on improved investor confidence and a broader return of demand across key sectors.

Going forward, Cowry Assets Management Limited said, market direction is likely to be shaped by corporate earnings expectations, valuation levels, dividend prospects and broader investor sentiment amid evolving macroeconomic conditions.

The firm noted that the negative market breadth, with decliners significantly outnumbering gainers, points to persistent selling pressure and suggests that investors may maintain a cautious, selective approach, favouring fundamentally strong stocks with attractive valuations, sustainable earnings and consistent dividend potential.

It added that “nevertheless, continued price adjustments could create opportunities for bargain-hunting in quality equities, potentially supporting a market rebound if buying interest strengthens. However, the sustainability of any recovery will depend on improved investor confidence and a broader return of demand across key sectors.”

Cordros Securities Limited pointed out that this week, trading is expected to remain cautious as the first batch of earnings releases begins to hit the NGX, driving heightened stock-specific activity, saying that investor focus is likely to centre on earnings quality and forward guidance, prompting selective repositioning across counters.