The Nigerian equities market experienced a downturn in October, closing down 0.92% as investors largely sold off industrial and consumer goods stocks, despite gains in oil & gas, banking, and insurance sectors.
The NGX Industrial Index fell by 9.31%, while the NGX Consumer Goods Index decreased by 0.75%. In contrast, the NGX Oil & Gas Index rose by 15.90%, bolstered by strong performance in energy stocks. The NGX Banking Index and NGX Insurance Index also saw increases of 4.78% and 4.01%, respectively.
The last week of October was particularly challenging for the market, with four consecutive days of negative closes resulting in a cumulative decline of 1.81%. As the bearish trend persists, analysts suggest that investors may look to capitalize on undervalued stocks with solid fundamentals, particularly amid ongoing corporate actions such as dividend announcements.
Year-to-date (YtD), the market’s return decreased to +30.60% as of October 31, down from +31.81% at the end of the previous month. The Nigerian Exchange Limited (NGX) All-Share Index (ASI) opened October at 98,558.79 points and closed at 97,651.23 points, while market capitalization rose from N56.635 trillion to N59.171 trillion during the month.
Notably, the market was buoyed by new listings, including Aradel Holdings Plc, which debuted on October 14 with a share price of N702.69. However, the stock has since dropped 28.8%, trading at N495.10 by the end of October, having peaked at N850.10 shortly after its listing. Aradel’s introduction initially boosted NGX market capitalization by N3.05 trillion.
Additionally, asset management firm Norrenberger listed its Islamic Fund (NIF) and Norrenberger Turbo Fund on the NGX on October 29. Both funds are designed for investors seeking returns above conventional Shariah-compliant fixed deposits while minimizing risks associated with equity investments. The NIF targets investors with a short- to long-term investment horizon prioritizing adherence to Shariah principles.