NGX: Stocks slip, year-to-date returns drop to 2.51%

By Chinwendu Obienyi

The local equities market closed lower in a holiday-shortened trading week, with the benchmark index posting a marginal decline of 0.14 per cent as investors navigated mixed sentiment across sectors. Market capitalisation declined by about N110 billion to settle at N66.147 trillion from N66.257 trillion. The weekly loss pulled back the market’s year-to-date (YTD) return to +2.51 per cent.

The market opened for just three trading days due to public holidays on Monday, March 31 and Tuesday, April 1, in celebration of Eid-el-Fitr. Each session ended in the red, reflecting sustained sell pressure in key sectors such as insurance, oil & gas, and consumer goods. At the close of trading on Friday, April 4, the NGX All-Share Index (ASI) stood at 105,511.89 points, down from the previous week’s 105,660.64 points.

Despite some bargain hunting in banking stocks ahead of dividend announcements—which lifted the NGX Banking Index by 0.51 per cent—overall market sentiment remained tepid. The broader market was weighed down by declines in key sectors, with the NGX Insurance Index falling by 2.38 per cent, Oil & Gas dropping 1.94 per cent, and Consumer Goods shedding 0.64 per cent, reflecting persistent sell pressure and investor caution.

Market activity also reflected the shortened week, with a total turnover of 1.132 billion shares worth N28.650 billion traded in 32,425 deals. This marked a decline from the previous week’s 2.157 billion shares valued at N108.824 billion in 35,647 deals. The Financial Services sector led in volume terms, contributing 72.71 per cent and 60.40 per cent to the total equity turnover volume and value respectively. Top traded equities by volume were Access Holdings, United Bank for Africa, and Guaranty Trust Holding Company.

On the gainers’ chart, Julius Berger, Cadbury Nigeria, and Neimeth International Pharmaceuticals recorded notable advances. Conversely, Eterna, SUNU Assurances, and DAAR Communications led the week’s decliners. Analysts expect the market to remain guided by corporate earnings releases, dividend considerations, and evolving macroeconomic signals in the coming sessions.