Investors in the Nigerian equities market lost about N206 billion in market value last week as renewed sell-offs in high-capitalised stocks across sectors weighed on market performance, weakening its year-to-date return.

At the close of trading last week, the market capitalisation of equities listed on the Nigerian Exchange (NGX) fell to N160.52 trillion, while the benchmark NGX All-Share Index declined by 0.97 per cent week-on-week to close at 247,222.27 points.

Consequently, the market’s year-to-date return moderated to 58.87 per cent as decliners outnumbered gainers, reflecting sustained selling pressure across several sectors.

Market breadth closed negative, with 20 stocks recording price gains against 55 decliners, representing a breadth ratio of 0.36 times.

Despite the decline in market value, trading activity was mixed, with volume and transaction value up 7.17 per cent and 12.81 per cent week-on-week, respectively. However, the number of deals fell by 6.23 per cent. Investors traded 1.78 billion shares valued at N110.81 billion in 173,403 deals during the week.

Sectoral performance was also mixed, with the industrial goods sector emerging as the only major bright spot among the sectors highlighted, gaining 1.95 per cent, while insurance recorded the steepest decline of 2.80 per cent.

The industrial goods sector’s performance was supported by gains in Meyer and Dangote Cement, which offset losses in HBM Nigeria and Tripple Gee. Buying interest in selected industrial stocks helped the sector advance despite the broader market downturn.

In contrast, the insurance sector came under pressure from losses in Regal Insurance, Linkage Assurance and AIICO Insurance, despite a 1.25 per cent gain in WAPIC Insurance.

The oil and gas sector followed with a 2.55 per cent decline, as losses in Aradel Holdings, Oando and Eterna weighed on performance. The downturn suggested a reversal of the buying interest recorded in the previous week, as investors adjusted their positions in selected energy stocks.

The banking sector also shed 0.67 per cent, with declines in Access Holdings, United Bank for Africa and Zenith Bank outweighing gains in First HoldCo and Fidelity Bank.

Similarly, the consumer goods sector fell by 0.55 per cent, dragged down by International Breweries, Vitafoam Nigeria and Dangote Sugar Refinery. Gains in NASCON Allied Industries, Multi-Trex Integrated Foods and PZ Cussons Nigeria, however, helped limit the decline.

On the price movement chart, ABC Transport led the gainers with a 20.7 per cent appreciation, followed by Africa Prudential-related investment firm AVA Capital, which gained 17.7 per cent. Caverton Offshore Support Group rose by 17.1 per cent, while Fidelity Bank and Multi-Trex Integrated Foods gained 14.0 per cent and 10.0 per cent, respectively.

On the losers’ chart, UPDC Real Estate Investment Trust declined by 17.3 per cent, while Omatek Ventures shed 12.5 per cent. University Press, Regal Insurance and NGX Group fell by 12.1 per cent, 11.3 per cent and 10.3 per cent, respectively.

Other notable decliners included Enamelware, which lost 10.0 per cent, NASCON Allied Industries, down 9.5 per cent, Trans-Nationwide Express, which shed 9.1 per cent, and LivingTrust Mortgage Bank, which fell by 8.4 per cent.

Analysts expect the market’s direction in the coming weeks to depend on corporate earnings, valuations, dividend prospects and investor sentiment amid changing economic conditions.

Market observers expect the exchange to remain cautious as investors weigh market risks against opportunities in fundamentally strong stocks.