NGX Index Falls 1.60% as 80 Stocks Slide, Financials Dominate Trading

The Nigerian Exchange Limited closed the trading week bearish, with the All-Share Index dropping 1.60 per cent to 243,052.74 points from its opening level of 246,992.44 points. Market capitalisation contracted 1.24 per cent to close at N157.587tn.

Sentiment was heavily negative. Eighty equities depreciated against just nine gainers, while 58 stocks closed unchanged. Despite the pullback, the market remains up 56.19 per cent year to date.

Profit-Taking Pressures

The weekly contraction reflects broader economic dynamics as institutional investors rebalance portfolios after extended bull runs across tier-1 equities. Analysts attribute the profit-taking wave to lingering inflationary pressures, high debt-issuance yields in the fixed-income market, and corporate earnings recalibration across the banking and manufacturing sectors.

Heavy activity in primary capital issuances, including major rights issues, commercial paper offerings and sovereign bond sales, has also diverted liquidity away from secondary equity trading.

Financial Sector Anchors Volume

Total traded volume reached 3.647 billion shares valued at N130.151bn in 244,777 deals. That is down from the previous week's 4.360 billion shares worth N210.331bn in 223,284 transactions.

The Financial Services Industry again led by volume, recording 2.909 billion shares valued at N56.668bn in 106,662 deals. The sector contributed nearly 80 per cent of total equity turnover volume and over 43 per cent of total value.

The Services Industry followed with 153.122 million shares worth N2.331bn, while Consumer Goods placed third with 116.656 million shares worth N11.035bn.

Fortis Global Insurance Plc, Mutual Benefits Assurance Plc and Sterling Financial Holdings Company Plc led the volume chart, accounting for 1.544 billion shares valued at N4.067bn in 3,017 deals. The three equities alone made up over 42 per cent of turnover volume but just over three per cent of value.

An analyst at Apt Securities and Funds Limited said, "Overall, the session was characterised by bullish sentiment and weaker trading activity, as renewed buying interest supported another positive close despite lower market turnover."

Insurance Tumbles, Oil and Gas Gains

Sectoral indices mostly tracked lower. The Insurance Index posted the largest drop at 5.52 per cent, Banking fell 4.07 per cent, Industrial Goods lost 3.36 per cent and Consumer Goods shed 2.55 per cent.

The Oil and Gas Index advanced 2.83 per cent, while the Commodity Index gained 2.19 per cent. The MERI Value Index, AFR Dividend Yield Index and Sovereign Bond Index also closed positive.

Nigerian Exchange Group Plc was the top gainer, rising 13.85 per cent to N148.00 per share from N130.00. Ellah Lakes Plc gained 13.33 per cent to N10.20, while Seplat Energy Plc climbed 10.00 per cent to N14,907.80.

Fortis Global Insurance recorded the steepest fall, down 27.50 per cent to N1.45 per share. Critical Minerals Financing Corp Plc dropped 24.24 per cent to N2.00.

Listings and Alternative Assets

Exchange Traded Products recorded 2.259 million units valued at N451.246m across 5,627 deals, up from 2.102 million units worth N425.921m the previous week. The Fixed Income segment traded 115,145 bond units valued at N123.330m in 50 deals, down from 295,465 units worth N293.761m.

Two tranches of Federal Government of Nigeria Savings Bonds issued in August were listed on 9 September: the two-year 13.963 per cent bond maturing August 2028 with an issued value of N1.318bn, and the three-year 14.963 per cent bond maturing August 2029 with an issued value of N4.545bn.

Dangote Sugar Refinery Plc added over 8.097 billion ordinary shares following its Rights Issue at N60.00 per share, lifting its total issued share capital above 20.244 billion shares.

For Nigerian investors, the week's story is familiar. Fixed-income yields and fresh capital raises are still pulling money out of equities, and until those yields ease, the NGX is likely to keep trading in fits and starts.