Stocks Fall, Naira Weakens as Investors Turn Cautious

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The Nigerian stock market recorded its first weekly decline in 2026, as investors lost about N394 billion amid sustained profit-taking.

The All-Share Index (ASI) fell by 0.37 per cent week-on-week to close at 165,512.18 points, reflecting weaker investor sentiment.

Market capitalisation also declined by 0.37 per cent to N105.96 trillion, from N106.35 trillion in the previous week.

As a result, the market lost approximately N394 billion, while the year-to-date return moderated to 6.36 per cent.

Despite the overall decline, market breadth remained positive, with 57 stocks gaining against 40 decliners.

Trading activity weakened during the week, as total deals fell by 9.97 per cent, traded volume declined by 18.83 per cent, and traded value dropped by 23.71 per cent.

By the close of the week, investors exchanged 3.75 billion shares valued at N99.9 billion in 237,302 deals, reflecting cautious positioning and continued sell pressure.

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Sectoral performance was largely negative, as all sectors closed lower except the oil and gas and commodity sectors, which gained 1.36 per cent and 0.79 per cent, respectively, supported by price appreciation in Aradel Holdings Plc, although losses in Eterna Plc limited the gains.

The consumer goods sector declined by 1.48 per cent, weighed by selloffs in Nigerian Breweries Plc and International Breweries Plc.

The banking sector fell by 1.32 per cent, as investors trimmed exposure to First HoldCo Plc and Fidelity Bank Plc following recent rallies.

The insurance sector edged lower by 0.10 per cent, dragged by profit-taking in Wapic Insurance Plc and Guinea Insurance Plc.

The industrial goods sector posted the mildest decline of 0.08 per cent, reflecting modest selling in Cutix Plc and Lafarge Africa Plc, despite a strong performance by Tripple Gee and Company Plc.

At the stock level, Deap Capital Management and Trust Plc led gainers with a 60.1 per cent increase, followed by SCOA Nigeria Plc with 59.7 per cent, NCR Nigeria Plc with 46.4 per cent, DAAR Communications Plc with 41.7 per cent, and RT Briscoe Plc with 40.7 per cent.

On the losers’ table, Eterna Plc fell by -11.9 per cent, NSL Tech Plc by -10.2 per cent, IMG Plc by -9.9 per cent, Alex Industries Plc by -9.9 per cent, and UPDC Plc by -8.1 per cent, respectively.

“Looking ahead, we expect the Nigerian equities market to remain range-bound in the near term, as cautious investor sentiment persists amid ongoing profit-taking and soft trading activity.

“While the recent pullback has moderated gains accumulated earlier in the year, the market’s year-to-date return of 6.36% suggests that downside risks may be somewhat contained, particularly for fundamentally strong and dividend-paying stocks,” Cowry analysts stated.

Naira weakens despite an increase in external reserves

In the foreign exchange market, the naira weakened against the US dollar, falling by 0.21 per cent at the official window to N1,421.63 and by 0.72 per cent at the parallel market to N1,475.

Nigeria’s external reserves rose by 0.20 per cent to $45.99 billion, supported by steady oil receipts, stronger non-oil inflows, and a trade surplus.

In the commodities market, oil prices rebounded after comments by US President Donald Trump about a naval “armada” heading to Iran heightened geopolitical risks.

Brent crude traded at $64.50 per barrel, while West Texas Intermediate crude stood at $59.78. However, Bonny Light crude fell by 1.21 per cent to $67.61 amid supply concerns linked to Iran.

“The naira is expected to remain under pressure in the near term due to FX demand pressures and structural imbalances, though rising external reserves may provide some support. Oil prices are likely to stay volatile, driven by geopolitical risks in the Middle East and OPEC supply factors,” the analysts added.

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