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

Last week, the Nigerian stock market experienced a negative closing, with profit-taking in Aradel Holdings and other companies reducing the market capitalization by N210 billion. This brought the market capitalization down to N160.52 trillion, with the NGX ASI falling by 0.97 percent week-on-week to close at 247,222.27 basis points.

Consequently, the year-to-date return moderated to 58.87 percent. Investor sentiment remained weak, with negative market breadth showing 20 gainers against 55 decliners, indicating that more stocks were declining than rising. ABC Transport Plc, AVA Capital Partners Limited, and Caverton Offshore Support Group Plc led the gainers, while Omatek Ventures Plc, University Press Plc, and Regency Alliance Insurance Plc were among the biggest losers.

Total turnover in the market reached 2.024 billion shares worth N110.773 billion in 173,113 deals, up from 1.659 billion shares valued at N98.088 billion in the previous week's 184,632 deals. The Financial Services Industry led the activity, contributing 54.89 percent to the total equity turnover volume and value. The Consumer Goods Industry and the Agriculture Industry also showed substantial trading activity.

Analysts suggested that the market's direction would be influenced by corporate earnings expectations, valuation levels, dividend prospects, and broader investor sentiment in the face of evolving macroeconomic conditions. They noted that continued price adjustments might create opportunities for bargain-hunting in quality equities, but the sustainability of any recovery would depend on improved investor confidence and a broader return of demand in key sectors.