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By Chukwuma Umeorah
The Nigerian Exchange (NGX) equities market recorded its first weekly decline in 2026, losing about N394 billion in value in one week as cautious sentiment returned and investors reduced exposure to stocks following recent gains.
Market capitalisation declined by 0.37 per cent to N105.96 trillion from N106.35 trillion in the previous week, while the NGX All-Share Index fell by 0.37 per cent to close at 165,512.18 points. The year-to-date return (YTD) moderated to 6.36 per cent.
The decline followed several sessions of profit-taking, which weakened momentum across most sectors of the market. Although the number of advancing stocks continued to exceed decliners, losses in key large-capitalisation stocks weighed on overall performance.
Trading activity also slowed, reinforcing the cautious tone. Total deals, volume, and value traded all declined from the previous week, reflecting reduced risk appetite among investors. About 3.75 billion shares valued at N99.9 billion were exchanged in 237,302 deals, compared with higher turnover levels recorded a week earlier (4.607 billion shares valued at N130.636 billion in 263,439 deals).
Sectoral indices closed largely lower, underscoring the broad nature of the pullback. The consumer goods sector recorded one of the sharper declines of 2.02 per cent down from a positive close the previous week, which contributed to the market’s upward trend prior to this pullback, pressured by sell-offs in major brewing and food companies such as Nigerian Breweries and International Breweries. Banking stocks also closed lower with a 1.32 per cent drop contrasting with gains in the prior week amid earlier rallies as investors trimmed positions in several tier-one and mid-tier lenders like FirstHoldCo and Fidelity Bank after recent rallies.
The insurance and industrial goods sectors posted marginal losses of 0.10 per cent and 0.08 per cent respectively reflecting selective profit-taking across counters such as Wapic, Guinea Insurance, Cutix, and Wapco. In contrast, the oil and gas and commodities indices finished the week in positive territory with gains of 1.36 per cent and 0.79 per cent respectively supported by gains in a small number of stocks like Aradel, though these were insufficient to offset weakness elsewhere in the market.
Despite the overall decline, market breadth remained moderately positive at 1.43x, as 58 stocks advanced (58) outweighing 40 stocks whose value dropped. This suggested the presence of selective bargain hunting, particularly in low-priced and mid-cap equities, even as overall sentiment softened. However, the number of gainers decreased from 80 in the previous week, while decliners rose sharply from 17, with unchanged stocks holding steady at 50.
At the stock level, several counters recorded significant price increases during the week, led by sharp gains in a number of small and mid-capitalisation stocks such as Deap Capital Management & Trust Plc (+60.09 per cent), SCOA Nig. Plc (+59.73 per cent), NCR (Nigeria) Plc (+46.36 per cent), Zichis Agro Allied Industries Plc (+44.75 per cent), and Daar Communications Plc (+41.67 per cent). However, declines in some established names like Eterna Plc (-11.92 per cent), Secure Electronic Technology Plc (-10.19 per cent), Industrial & Medical Gases Nigeria Plc (-9.95 per cent), Aluminium Extrusion Ind. Plc (-9.95 per cent), and UPDC Plc (-8.06 per cent) limited the impact of these advances on the broader indices.
Analysts at Cowry said the week’s performance “reflected a consolidation phase after the early-year rally, with investors reassessing valuations and locking in profits.” They added that the moderation in turnover indicated a wait-and-see approach ahead of further corporate disclosures and macroeconomic signals.
According to them, the equities market is expected to remain cautious in the near term, with trading likely to be influenced by profit-taking, corporate earnings expectations, and movements in liquidity.
