October 11, (THEWILL) – The decline in the benchmark index coincided with a deterioration in market breadth, as the number of declining equities increased while gainers fell significantly compared with the previous week. The performance suggests that negative sentiment extended across a wider range of stocks, limiting the market’s ability to sustain its upward momentum.
Trading activity was mixed during the week. Investors exchanged 2.715 billion shares valued at N158.280 billion, compared with 3.166 billion shares worth N155.023 billion in the preceding week. Although the volume of shares traded declined by approximately 14.25 percent, the total value of transactions increased by about 2.10 percent.
The divergence between trading volume and value indicates that investors traded fewer shares but recorded a higher aggregate transaction value. However, the increase in turnover value alone does not establish stronger buying interest, particularly as the benchmark index declined and market breadth weakened.
Market participation also reflected a shift in the balance between advancing and declining stocks. A total of 24 equities appreciated during the week, down from 44 in the previous week, while 54 equities recorded price declines, compared with 37 previously. Another 68 equities closed unchanged, up from 65 in the preceding week.
The increase in decliners alongside the reduction in gainers points to a less favourable market environment, with losses affecting more stocks than gains. The broader distribution of price declines suggests that investors remained cautious across several segments of the market.
Across the market indices, all other indices closed lower, with the exception of the NGX Industrial Goods Index, which gained a marginal 0.02 percent. The modest advance in the industrial goods benchmark provided limited support against the broader weakness recorded during the week.
Sectoral Performance and Trading Activity
The Financial Services Industry dominated trading activity by volume, reflecting the substantial participation of banking and other financial stocks in the market. The sector recorded 2.005 billion shares valued at N82.924 billion.
Its contribution represented 73.84 percent of total equity turnover volume and 52.39 percent of total turnover value, making it the largest contributor to trading activity during the week. The figures underscore the importance of financial services stocks to overall market liquidity and investor participation.
The Consumer Goods Industry ranked second by volume, with 152.345 million shares valued at N11.425 billion traded during the period. The Information and Communications Technology (ICT) Industry followed, recording 117.296 million shares worth N15.256 billion.
Although the ICT sector traded fewer shares than consumer goods, its higher transaction value reflected a different average value per share traded across the two sectors. The figures highlight the importance of examining both volume and value when assessing activity across industry groups.
Access Holdings Plc, Zenith Bank Plc and United Bank for Africa Plc were the three most actively traded equities by volume. Together, the stocks recorded 1.020 billion shares valued at N50.520 billion.
Their combined activity accounted for 37.56 percent of total equity turnover volume and 31.92 percent of turnover value.
The concentration of trading in the three stocks further demonstrated the significant role of major financial institutions in shaping overall market activity.
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Top Price Gainers
- LIVESTOCK FEEDS Plc led the gainers during the week, appreciating 47.75 percent (from N8.90 to N13.15).
- TRIPPLE GEE AND COMPANY Plc followed, advancing 32.62 percent (from N2.33 to N3.09).
- GUINEA INSURANCE Plc gained 29.17 percent, (rising from N0.72 to N0.93)
- LEARN AFRICA Plc appreciated 19.61 percent (from N7.65 to N9.15).
- MULTI-TREX INTEGRATED FOODS Plc completed the list, gaining 16.67 percent (to close at N0.42 from N0.36).
The strong advances recorded by the leading gainers contrasted with the broader market decline. However, individual stock performance does not necessarily reflect the direction of the overall market, particularly when the number of declining equities exceeds the number of advancing stocks.
Top Price Decliners
- CRITICAL MINERALS FINANCING CORP Plc recorded the steepest decline, shedding 20.27 percent (from N4.49 to N3.58).
- ABC TRANSPORT Plc followed, losing 18.24 percent as its share price fell (from N7.40 to N6.05).
- JAPAUL GOLD & VENTURES Plc declined 11.11 percent (from N2.88 to N2.56).
- FIDELITY BANK Plc shed 10.64 percent (to close at N21.00 from N23.50).
- ARADEL HOLDINGS Plc rounded out the five worst-performing equities, falling 10.00 percent (from N1,530.00 to N1,377.00).
The losses among the leading decliners, combined with the increase in the total number of declining equities, reinforced the negative tone of the week’s trading. Fidelity Bank and Aradel Holdings were among the larger listed companies on the decliners’ list, although the supplied figures alone do not establish the reasons behind their price movements.
Bonds Market
Activity in the bonds market increased during the week, with 144,034 units valued at N146.416 million traded, compared with 81,063 units worth N85.606 million in the previous week.
The number of units traded rose by approximately 77.68 percent, while transaction value increased by about 71.97 percent. The increase indicates higher recorded trading activity in the bond segment during the period, although the figures do not by themselves establish the direction of investor sentiment.
Market Outlook
The week’s performance reflected increased selling pressure, weaker market breadth and lower equity turnover volume. While the value of transactions rose, the decline in the ASI and the higher number of declining stocks indicated that the increase in trading value was insufficient to prevent a broad market pullback.
In the coming week, investor positioning around corporate earnings, company-specific developments, valuations and prevailing economic conditions may influence market direction. A more sustained recovery would likely require stronger buying interest and an improvement in market breadth, particularly if gains begin to spread beyond a limited number of equities.
Investors will also be watching whether the market can stabilise after the latest decline. Until broader participation improves, selective gains in individual stocks may coexist with continued pressure on the benchmark index.
Ogochukwu Onwaeze is a writer specializing in business and economic journalism. At THEWILL News Media, she translates market trends, financial developments, and policy shifts into clear and engaging stories.
