September 07, (THEWILL) -- Investors in the Nigerian equity market lost a total of N859 billion during the week ended Thursday, September 4 - a four-day trading period resulting from the declaration of Friday, September 5, as a public holiday to mark the Muslim Id el Maulud.
Market capitalisation and the NGX All-Share Index closed at N87.93 trillion and 138,980.01 points against N88.76 trillion and 140,295.50 points respectively, constituting a 0.94% drop in the breadth performance.
The Financial Services Industry led trading activity on the NGX for the second consecutive week. The sector recorded a surge in trading volume, but a decline in value and deals.
The bearish note that characterized the week reflects the growing investor cautious optimism amid uncertainties that underlie the economy. Though the economy is confirmed stable, this has generated mixed actions as the economy's prospects are still tied to oil.
Data by the NGX showed that the week recorded a total turnover of 3.117 billion shares valued at N90.2 billion in 118,018 deals traded by investors on the floor of the Exchange. This was in contrast to a total of 3.119 billion shares valued at N85.3 billion in 142,477 deals in the previous week.
The Financial Services industry accounted for a significant share in the market volume with 2.542 billion shares valued at N30.357 billion traded in 52,390 deals. This represented 81.55% of the total equity volume and 33.2% of the market's total value for the week.
In comparison to the previous week, the sector achieved a lower volume of 2.195 billion shares but a higher value of N42.689 billion across 66,808 deals. This contrast therefore translates to a 15.8% increase in trading volume, (increased by 347 million shares).
This represents a 28.9% drop in total value (N12.332 billion decline), and a 21.6% decrease in the number of deals (down by 14,418 transactions).
This increase in volume alongside decline in value suggests that investors are focusing more on cheaper financial stocks instead of high-priced stocks like the banking - a reflection of the cautious optimism that defines the fortune hunters' behaviour in the present economic circumstance.
Bond Market Performance
Just as the equity market ended on a bearish note, so did the Bond market - recording a total of 17,617 units valued at N18.000 million traded in 23 deals during the week. This indicates a clear drop in comparison to the previous week's performance which recorded a total of 80,523 units valued at N74.045 million transacted in 32 deals.
Industry analysts posit that the current bond market performance also reflects investors' behaviour under the cautious optimism sentiments in the capital market as dictated by the 'stable' interest rate and foreign exchange market.
Sector Indices, Market makers
A closer look at the report showed that all sectors finished the week lower, with the exception of the NGX Commodity Index and NGX Growth Index which gained 0.04% and 0.15% respectively. The NGX AseM index closed flat yet again.
Nineteen equities appreciated in price during the course of this week, a drop from the thirty-two equities recorded in the previous week. Sixty-four equities recorded a decline in price, higher than fifty-seven equities in the previous week.
The insurance sector topped the activity chart for price gainers. This superior performance could be attributed to the recently enacted Nigerian Insurance Industry Reform Act 2025 (NIIRA) widely applauded for its improved, modern legal framework, increased capital requirements, and a push for digitalisation and transparency.
A specific example is the profit and dividend drought Guinea Insurance Plc has gained investors' attention following shareholder approval for capital raising to meet regulatory benchmarks and enhance its capital base.