MORGANABLE BUSINESS / MARKETS
Nigeria’s stock market ended the trading week on a slightly weaker note after investors sold selected shares and took profits from recent gains.
Akure —
Nigeria’s stock market ended the trading week on a slightly weaker note after investors sold selected shares and took profits from recent gains.
The Nigerian Exchange Limited (NGX) lost about ₦63.41 billion in market value on Friday, November 13, bringing its capitalisation to approximately ₦163.80 trillion.
The decline came after a stronger performance across the week. The market had added about ₦2.20 trillion in value between November 6 and November 13, representing a 1.36 per cent increase. As a result, Friday’s loss did little to erase the broader recovery recorded during the five trading sessions.
The NGX All-Share Index (ASI), which tracks the performance of listed equities, fell by 97.64 points, or 0.04 per cent, to close at 252,269.16 points. It had closed at 252,366.80 points on Thursday. Meanwhile, market capitalisation slipped from ₦163.86 trillion to ₦163.80 trillion.
FRIDAY’S MARKET PERFORMANCE
Profit-taking in selected large-capitalisation stocks contributed to Friday’s decline. GTCO fell by 0.25 per cent, while Zenith Bank lost 0.09 per cent. FCMB also declined by 0.91 per cent, and United Capital shed 0.30 per cent, adding pressure to the benchmark index.
Market breadth also showed that the session was not marked by widespread selling. Twenty-two equities advanced, while 21 declined, according to the reported Friday market figures. Caverton Offshore Support Group led the gainers, rising by 10 per cent to close at ₦4.40 per share.
On the losing side, Multiverse Mining led the decliners after its share price dropped by 9.90 per cent to ₦17.30. Livingtrust Mortgage Bank fell by 9.69 per cent to ₦2.33, while Etranzact declined by 8.11 per cent to ₦17. Haldane McCall lost 4.58 per cent, and Sovereign Trust Insurance shed 3.52 per cent.
Trading activity increased by volume during the session. Investors exchanged 3.70 billion shares in 27,205 deals, with a combined value of ₦23.11 billion. The volume represented a 26.86 per cent rise from the previous session, while the value traded fell sharply by 70.62 per cent.
Linkage Assurance dominated trading by volume, accounting for about 3.10 billion shares, or 83.90 per cent of the total. First Holdco, however, recorded the highest value traded at ₦7.33 billion.
These figures show that the most actively traded stock by volume was not the one that attracted the highest transaction value.
WEEKLY GAINS REMAIN INTACT
Despite Friday’s retreat, the NGX finished the week higher than it began. The All-Share Index rose by 1.36 per cent, from 248,877.22 points on November 6 to 252,269.16 points on November 13. Market capitalisation also increased from ₦161.59 trillion to ₦163.80 trillion. The recovery offered some relief again.
Industrial goods, insurance and premium stocks helped support the recovery. The NGX Industrial Goods Index recorded a weekly increase of 6.11 per cent, while the Insurance Index rose by 4.44 per cent.
The Premium Index also gained 3.59 per cent. These advances helped offset declines in some other market segments.
Several large companies recorded notable gains during the week. Dangote Cement rose by 9.61 per cent, while Oando advanced by 14.80 per cent.
Ecobank Transnational Incorporated gained 6.93 per cent, and Seplat Energy added ₦241.80 to its share price, a rise of 1.51 per cent.
These movements mattered because large companies carry significant weight in the market.
When their share prices rise, they can lift the benchmark and increase the total value of listed equities.
In the same way, a decline in major stocks can weigh on the index even when many smaller shares record gains.
The broader weekly figures also pointed to improved investor participation. Forty-three equities gained during the week, compared with 39 that declined, while 64 stocks closed unchanged. The market recorded about 8.03 billion shares traded, compared with 2.83 billion shares in the previous week.
However, the total value of shares traded fell to ₦185.36 billion from ₦208.41 billion. The number of deals also declined to 160,836 from 192,158. Therefore, the rise in trading volume did not translate into a higher total transaction value or more deals.
WHAT THE MOVEMENT MEANS FOR INVESTORS
Friday’s decline highlights the difference between daily market movements and a market’s performance over a full week.
A single session can reduce market capitalisation without cancelling gains made during earlier sessions. Investors should therefore consider both daily figures and longer performance periods when assessing market direction.
The figures also show why market breadth alone does not determine the movement of the All-Share Index. The index reflects changes in share prices across listed companies, with larger companies carrying greater influence. Consequently, losses in a few major stocks can outweigh gains in several smaller companies.
Profit-taking may continue as investors review the gains recorded in recent sessions. At the same time, lower prices could attract buyers who believe selected shares offer value. The balance between these two groups will help shape trading in the coming sessions.
Investors will also watch company results, sector performance and broader economic conditions for signals about future returns.
Changes in interest rates, inflation, corporate earnings and foreign exchange conditions can affect how investors value listed companies. However, these factors do not guarantee a particular market direction.
OUTLOOK
The NGX closed the week with a small daily loss but retained a clear weekly gain. Its market capitalisation stood at about ₦163.80 trillion, while the All-Share Index ended at 252,269.16 points. The market’s year-to-date return remained above 62 per cent.
The next sessions will show whether buyers can sustain the recovery or whether investors will continue to lock in profits.
For now, the figures point to a market that remains positive over the week, even as short-term selling pressure appears in selected stocks.
