Equities slump, investors lose N2.29trn in 1 week

By Chukwuma Umeorah

Investors in the Nigerian Exchange Limited (NGX) lost about N2.29 trillion last week as sustained selloffs across major sectors dragged the benchmark All-Share Index (ASI) down by 2.51 per cent. The ASI fell by 3,624.06 points to close at 141,004.14 on Friday, August 22, 2025, compared with 144,628.20 points recorded in the preceding week.

Similarly, market capitalisation dropped to N89.209 trillion from N91.499 trillion. Last week’s trading data showed that equities trading remained bearish as 54 companies recorded price depreciation, higher than 49 in the previous week. Only 43 equities appreciated in price, compared with 50 recorded earlier, while 49 remained unchanged.

The downtrend was driven largely by losses in the Banking, Insurance and Industrial Goods sectors. The NGX Industrial Goods Index was the worst performer, declining by 8.42 per cent, followed by the Insurance Index which shed 4.17 per cent. The Banking Index depreciated by 3.48 per cent, while the Oil and Gas Index also fell by 0.84 per cent.

In contrast, the NGX Consumer Goods Index and the NGX Growth Index were the only sectors that closed positive, rising by 0.83 per cent and 4.14 per cent respectively. The NGX ASeM and NGX Commodity indices closed flat.

Analysts at Cowry Asset Management noted, “Market performance was weighed down by widespread declines across major sectors, as persistent bearish sentiment fueled sustained selloffs in Banking, Insurance, Oil and Gas, and Industrial Goods stocks.”

The week also recorded reduced investor participation. A total turnover of 4.773 billion shares valued at N107.426 billion exchanged hands in 152,965 deals, against 8.564 billion shares worth N99.936 billion traded in 177,870 deals the previous week.

Despite the decline in volume, value of trades rose by 8.47 per cent, reflecting increased transactions in high-value equities. Universal Insurance Plc, Zenith Bank Plc and FCMB Group Plc were the most traded stocks, accounting for 25.16 per cent of the total equity turnover volume.

Top decliners during the week included Thomas Wyatt Nigeria Plc which fell by 18.92 per cent, NEM Insurance Plc down by 18.15 per cent, and Stanbic IBTC Holdings Plc which lost 15.39 per cent. Other major losers were Lasaco Assurance Plc, R T Briscoe Plc and Cutix Plc.

Market observers believe cautious sentiment will continue in the near term due to prevailing macroeconomic headwinds and tight liquidity. Cowry added that “bargain-hunting in consumer goods stocks may provide limited relief, but pressure on Banking and Industrial counters is likely to persist unless there are major policy pronouncements or positive earnings to boost confidence.”