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Chukwuma Umeorah
Fresh listings on the Nigerian Exchange helped lift market capitalisation by about N837 billion in the past week ending April 2, offsetting a sharp decline in trading activity that reflected cautious investor participation.
Trading data from the Nigerian Exchange Limited (NGX) showed that the All-Share Index (ASI) rose marginally by 0.39 per cent to close at 201,698.89 points, while market capitalisation increased by 0.65 per cent to N129.81 trillion, driven largely by the additional listing of over 21 billion ordinary shares by FCMB Group and about 5.07 billion shares by VFD Group.
However, the positive market performance contrasted sharply with weakened activity levels, as total turnover declined significantly during the period. Investors traded about 2.86 billion shares valued at N113.6 billion in 215,287 deals, compared with 3.95 billion shares worth N201.3 billion recorded in the previous week, indicating a broad pullback in participation.
The drop in activity was further reflected in a 40 per cent decline in the number of deals, alongside reductions in both volume and value traded, suggesting that while prices held firm, fewer investors were actively taking positions in the market.
Market breadth also remained weak, with decliners outpacing gainers. A total of 57 stocks recorded losses compared to 29 gainers, highlighting that the overall index rise was driven by a limited number of stocks rather than broad-based buying interest.
“The trend points to a more selective market, with investors focusing on fundamentally strong and liquid stocks, while locking in profits in previously rallying counters,” Cowry Asset Management said in their weekly review note.
Sectoral performance reflected this cautious positioning, as gains in banking and oil and gas stocks were offset by losses in insurance, consumer goods and industrial names, where profit-taking pressures persisted.
Activity was largely concentrated in financial services stocks, which accounted for over 60 per cent of total traded volume, underscoring continued investor preference for high-liquidity counters.
Top performers during the week included Multiverse Mining, which gained 20.7 per cent to close at N20.15 per share, followed by UPDC REIT, International Energy Insurance and Austin Laz, while Unilever also posted notable gains. On the downside, Secure Electronic Technology declined by 21.5 per cent, alongside losses in John Holt, May & Baker and other mid-tier stocks.
Despite the slowdown in trading, analysts expect the market to remain mildly positive in the near term, supported by ongoing earnings releases and the start of the dividend season. They, however, cautioned that weak breadth and declining participation suggest the rally remains fragile and narrowly driven, with investors likely to maintain a selective and defensive approach.
