The Nigerian equities market extended its bearish run last week, with the all-share index recording a 1.68 per cent week-on-week decline as investors reacted sharply to uncertainty surrounding the proposed capital gains tax.

Panic selling peaked last week on Tuesday when the market recorded a landmark five per cent single-day drop, its steepest fall in years, as fears of potential valuation shocks rippled through trading floors.

Calmer sentiment returned midweek after the Federal Government signalled that it might reconsider the tax proposal, prompting cautious bargain-hunting and helping the market secure its first positive close for November.

Despite the brief rebound, total market capitalisation fell by N1.5 trillion to N93.5 trillion, while the index ended the week at 147,013.59 points, trimming the year-to-date return to 42.83 per cent.

Market breadth ended slightly positive at 1.07x as 48 stocks advanced against 45 decliners, showing that resilience persisted in pockets of the market. Trading patterns, however, revealed a sharp shift: while the number of deals dropped by 7.6 per cent, traded volume and value surged by 104.87 per cent and 46.17 per cent to 7.32 billion units and N156 billion, respectively.

The rise in turnover reflected heightened institutional block trades even as retail activity remained subdued. Sector performance leaned mostly positive. Insurance stocks led with a 2.42 per cent gain amid speculative and value-driven positioning.

Banking stocks rose 1.26 per cent, consumer goods added 0.46 per cent, and oil and gas edged up by 0.01 per cent. In contrast, the industrial goods sector tumbled 6.97 per cent as investors continued to offload major counters, while the commodity index fell 2.02 per cent on broad profit-taking.

NCR led the market as the strongest performer of the week, rising by 32.3 per cent on the back of vigorous buying interest. It was closely followed by Aso Savings, which gained 14.4 per cent, while Champion and International Energy Insurance each advanced by 11.5 per cent. NSLTECH also recorded a solid uptick of 10.7 per cent.

In contrast, Union Dicon suffered the sharpest decline, shedding 18.7 per cent, with AustinLaz trailing closely after an 18.6 per cent drop. Multiverse fell by 14.5 per cent, while Academy Press and Dangote cement each recorded losses of 10 per cent, pressured by intensified profit-taking and weakening investor sentiment.

With liquidity increasingly concentrated in institutional trades, sector leadership rotating at a rapid pace and technical indicators signalling overextended conditions, the market appears to be at a critical crossroads.

Although the ASI remains up 42.58 per cent year-to-date, the underlying tone is cautious, and the near-term direction will hinge on whether current rotational flows broaden or taper off.

As the market heads into next week, analysts anticipate subdued activity as investors balance year-end profit-taking with evolving macroeconomic signals.