The Nigerian stock market extended its losing streak for the fourth consecutive session this week as investors continued to unwind positions in key sectors, leading to a cumulative decline.
depreciation of about N2.5 trillion in market capitalization.
The market, which opened the week at N97.58 trillion, closed on Thursday at N95.32 trillion, reflecting deepening bearish sentiment and sustained profit-taking in large-cap stocks.
Consequently, the Nigerian Stock Exchange (NGX) All-Share Index (ASI) declined by 2.4 per cent from 153,739.11 points on Monday to 150,026.55 points, dragging the month-to-date and year-to-date returns to -2.7 per cent and +45.8 per cent respectively.
Losses in leading companies such as MTN Nigeria, Zenith Bank, Ecobank Transnational Incorporated and Access Holdings were instrumental in the week’s slowdown.
Analysts attributed the persistent selloffs to cautious investor sentiment amid portfolio rebalancing and profit-taking after months of strong rallies.
On Thursday on the NGX, market breadth remained weak with 39 declines outpacing 14 advances. In the performance table, Legend Interior and Champion Breweries topped the losers table, their share values having fallen by 9.9 percent and 9.7 percent, respectively; while UAC Property.
Development Company and First City Monument Bank led the gainers, having appreciated their share values by 9.8 percent and 8.0 percent, respectively.
Sectoral performance was largely bearish as the Banking, Insurance, Oil & Gas and Consumer Goods indices posted losses of 0.56 per cent, 0.28 per cent, 0.08 per cent and 0.06 per cent, respectively. The industrial goods index was the only bright spot, posting a marginal gain of 0.20 percent, while the raw materials sector closed flat.
Market activity also weakened significantly, with total trading volume falling by 44.5 percent to 619.63 million units, while total transaction value fell by 44.6 percent to N16.5 billion, executed in 24,865 trades. FCMB Group emerged as the most traded stock by volume with 149.99 million units, while Zenith Bank led by value with N2.51 billion.
Market analysts at Cowry Asset said the persistent bearish streak underscores waning institutional participation and increased investor caution amid macroeconomic uncertainties and high interest rate environments.
“Investors are taking profits from high-yielding stocks and rebalancing their positions towards fixed income instruments, given attractive yields in the debt market,” the analysts noted.
With four consecutive days of losses and eroded investor confidence, analysts expect the market to remain under pressure in the near term barring positive political catalysts or major corporate earnings surprises.