NGX suffers biggest decline in four weeks

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The Nigerian Exchange Limited (NGX) witnessed a decline in market capitalisation, losing N440.51 billion to close the week at N65.71 trillion. The NGX All-Share Index (ASI) shed 0.9% to close at 104,563.34 points, its lowest level in four weeks.

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The bearish trend was driven by uncertainty in both domestic and global economies, triggering negative sentiment among investors. Despite a 90-day reprieve on US tariffs, local investors remained focused on broader macroeconomic cues, opting for profit-taking and portfolio rebalancing.

The market’s weak breadth confirmed the bearish mood, with only 27 gainers compared to 56 losers, resulting in a negative breadth ratio of 0.48x. Sectoral performance largely mirrored the broader trend, with the NGX Insurance Index being the worst hit, down by 4.6%

Analysts at Cowry Asset Management Limited believe that the short-term outlook remains cautious, with attention shifting to key macroeconomic indicators. They stated, “With the market appearing to be in oversold territory, there is potential for a short-term rebound based on technicals. However, a sustained recovery will likely depend on improvements in macroeconomic fundamentals, clarity in fiscal and monetary policies, and stronger-than-expected corporate earnings.”

Meanwhile, analysts at Codros Capital said market sentiment is likely to be shaped by a combination of external and domestic factors, including developments in the global economy and the anticipated release of the March inflation report.

Despite the bearish trend, trading activity showed signs of resilience, with weekly volume and value of trades spiking significantly. Stocks such as VFD Group, Union Dicon, and ABBEYBDS delivered strong performances, adding 53.9%, 31%, and 29.6%, respectively.

However, these gains were overshadowed by sharp declines in stocks like Royal Exchange, Cornerstone Insurance, and SovereignTrust Insurance. Looking ahead, investors are expected to maintain a defensive stance, favoring value stocks with strong fundamentals and attractive dividend yields

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