Nigeria’s stock market ended the week of November 8 in the negative territory, despite recording more positive trading sessions than negative ones. The Nigerian Exchange Limited (NGX) All-Share Index (ASI) fell by 0.20%, closing at 97,236.19 points, while market capitalization dropped to N58.92 trillion.
Investor activity was a mix of buying and selling, with many investors capitalizing on value stocks that were trading at relatively low prices. Others positioned themselves to benefit from interim dividends as the third-quarter earnings season reached its peak. However, the broader market sentiment was weighed down by stronger returns in the fixed-income market, which lured investors away from equities.
The continued high yields in the fixed-income space were a major driver of the sell-side pressure at the Nigerian bourse, as investors opted for safer, more stable returns offered by government securities over the volatility of stocks.
Mixed Performance Across Market Segments
During the week, 31 stocks saw price appreciation, a decrease from 39 in the previous week, while 42 stocks recorded price declines, down from 45 the week before. Additionally, 79 stocks remained unchanged, showing a slight improvement over the 68 unchanged stocks from the prior week.
While the NGX ASI showed a decline, all other sectoral indices closed higher, with the exception of the NGX Main Board, NGX 30, NGX Lotus II, and NGX Industrial Goods, which saw losses of 0.48%, 0.17%, 0.08%, and 0.02% respectively. The NGX ASeM index remained flat for the week.
Despite the overall decline in the ASI, sector-specific indices such as the NGX Banking and NGX Consumer Goods were among the better performers, reflecting investor interest in these sectors, which are seen as relatively stable compared to others.
Outlook and Market Sentiment
The stock market’s mixed performance underscores ongoing investor caution as high yields in fixed-income assets continue to attract capital away from equities. As the third-quarter earnings season draws to a close, market focus will likely shift to the final quarter and how the market adapts to prevailing economic conditions, including inflation, monetary policy, and global market trends.
Analysts expect that the market may continue to face headwinds from the fixed-income sector, but the growing interest in interim dividends could provide support for select stocks. The outlook for the Nigerian stock market remains uncertain, with investors likely to adopt a more cautious approach in the coming weeks as they weigh opportunities for both capital appreciation and income generation.
In summary, despite some positive trading sessions, the Nigerian stock market closed the week under pressure, with mixed performance across sectors and a continued preference for high-yielding fixed-income assets. The coming weeks may see further shifts in investor sentiment as earnings reports continue to shape market expectations.