The equities market extended its losses for the fourth straight week, as the All-Share Index (ASI) fell below 145,000 basis points amid persistent selloff pressure on the trading floor of the Nigerian Exchange Limited (NGX).
In the week ended November 21, the ASI declined by 2.24 per cent to close at 143,722.62 bps, while the market capitalisation declined by 2.23 per cent to N91.415 trillion.
4-week losing streaks
The market has sustained a bearish momentum in the last four weeks, reflecting investors’ sentiments about uncertainties in the market.
On the weekend of October 31, the ASI and market capitalisation depreciated by 0.98 per cent to close at 154,126.46 bps and N97.829 trillion, respectively.
The bearish momentum continued in the first week of November, dipping the ASI by 2.99 per cent to 149,524.81 points and the market capitalisation by 2.89 per cent to N94.998 trillion.
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In the second week ending November 14, the ASI declined by 1.68 per cent to 147,013.59 points, while the market capitalisation fell by 1.58 per cent to N93.501 trillion.
In the just-concluded third week of November, the ASI extended the losing streak, shedding 2.24 per cent to close the week at 143,722.62 points, even as the market capitalisation dropped by 2.23 per cent to N91.415 trillion.
Analysts say the market may be headed to a fourth straight month of losses in this penultimate month to the end of the year.
Uncertainties that buffered investors’ sentiment
Pinnacle Daily reports that analysts have blamed the uncertainties unsettling investors’ confidence in the market on a number of issues.
This includes market fundamentals, particularly the relatively unimpressive financial results of the banks, which are cited as one of the major drivers of trading in the Nigerian equities market.
Virtually all the banks that have released their third-quarter financial statements posted a decline in their bottom-line profit, which is expected to affect their cumulative dividends to shareholders for the full-year operations.
On Tuesday, November 11, the stock market notched its worst trading session after investors lost approximately ₦4.65 trillion in a single day of trading, with only four stocks on the gainers’ table.
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While the losses in the equities market in recent times are not unexpected, as the year is coming to an end, investors are reviewing their investments with a view to re-strategising.
However, the implementation of the capital gains tax set to commence in January 2026 has further fuelled apprehension.
“We can’t rule out the multiple effects of the implementation of the capital gains tax, which, to me, is unfriendly to capital market investors.
“If anything comes in 2026, the market may not experience the boom it has this year, as investors will develop a cool fit towards the market,” the National President of the New Dimension Shareholders Association, Patrick Ajudua, had told Pinnacle Daily.
The negative sentiment on the floor of the NGX has also been buffeted by concerns about the United States President Donald Trump’s threat of military action against Nigeria over alleged Christian genocide.
Pinnacle Daily reported that Trump had asked the U.S. Defence Department to prepare for possible “fast” military action in Nigeria if President Bola Tinubu’s government fails to crack down on the killing of Christians.
It should be noted that the ASI has peaked at over 45 per cent year-to-date, but the return has dropped to 39.64 per cent as of November 21. Investors, analysts, and market watchers fear that if the persisting profit-taking continues, the market may bust significantly by year’s end.
How the stock traded in just just-concluded week
The Nigerian stock market was on a bearish trajectory in the concluded week as the ASI slipped below the 145,000 threshold to close at 143,722.62 points.
The downturn was driven largely by intensified profit-taking, a pattern that has become more pronounced as investors rebalance their portfolios ahead of year-end.
The wave of selloff pressure resulted in a notable contraction in the overall market value to N91.41 trillion as investors suffered approximately N2.09 trillion wiped off valuations.
Market sentiment remained broadly negative, leaving 19 stocks to gain while 60 stocks lost.
Trading activity weakened across all key indicators, with the number of trade volumes, values, and deals declining compared to the previous week.
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According to the NGX, a total turnover of 2.668 billion shares worth N106.264 billion in 107,998 deals was traded by investors compared to a total of 7.325 billion shares valued at N156.425 billion that exchanged hands in 134,383 deals the previous week.
Sectoral performance also mirrored the overall bearish tone as the industrial goods index led the decline, followed by the insurance, banking, consumer goods, oil and gas, and commodity
“Looking ahead, the equities market is likely to maintain a cautious tone next week as portfolio rebalancing and end-of-year profit-taking continue to influence trading behaviour. Activity may remain subdued in the absence of a clear market catalyst, while sectoral performance could stay mixed given the competitive pull of elevated fixed-income yields.
“Nonetheless, selective bargain-hunting in oversold counters may spark brief periods of recovery, keeping the NGX on a sideways-to-slightly-bearish trajectory in the near term,” analysts at Cowry Asset Management said.
Alex is a business journalist cum data enthusiast with the Pinnacle Daily. He can be reached via ealex@thepinnacleng.com, @ehime_alex on X
