#MarketWrap || Nigerian Stock Market Declines as ASI Drops 0.90% Amid Broad Selloffs

 

Nigerian Stock Market Declines as ASI Drops 0.90% Amid Broad Selloffs

The Nigerian equities market closed lower as the All‑Share Index (ASI) fell by 0.90% to 194,484.61 points, reflecting a sharp downturn across several major sectors. Market capitalization declined by N1.1 trillion, ending the session at N124.8 trillion. The decline highlights renewed investor caution amid ongoing macroeconomic pressures.

Equities Market Weakens as Large‑Cap Stocks Decline

The negative performance was driven by significant losses in key large‑cap stocks, including BUA Foods (-9.99%), MTN Nigeria (-2.56%), Stanbic IBTC (-5.35%), and Nigerian Breweries (-1.03%). Market breadth weakened to 0.65x, with 40 losers outpacing 26 gainers, underscoring broad selling pressure.

Despite the bearish sentiment, Jaiz Bank recorded a full‑day gain of 10%, emerging as the top performer. On the downside, DAAR Communications and Tantalizer both declined by 10%, leading the laggards.

Trading activity was mixed. Total market volume dropped by 4.94% to 1.1 billion units, while total value traded surged by 92.58% to N53.4 billion. Aradel Holdings accounted for a significant portion of value turnover with N6.4 billion, including nearly 8 million units executed off‑market across eight tranches. Japaul Gold led the volume chart with 102.4 million units traded.

Sector Performance Shows Mixed Sentiment

Sectoral performance varied across the market, with some sectors showing resilience despite the overall decline.

• Industrial Goods Index: Up 1.92%, supported by gains in Dangote Cement (+3.70%).
• Banking Index: Up 1.23%, driven by strong interest in Zenith Bank (+4.55%).
• Oil & Gas Index: Up 0.15%, boosted by Oando (+4.75%).

Two major sectors closed lower:

• Consumer Goods Index: Down 4.74%, pressured by a steep decline in BUA Foods (-9.99%).
• Insurance Index: Down 1.31%, following losses in Mutual Benefits Assurance (-9.91%).

The Commodities Index ended the session unchanged.

Fixed Income Market Strengthens as Yields Decline

The fixed income market recorded a bullish session as investors increased their positions across the yield curve. Bond yields declined at both the short end (-32bps) and mid‑segment (-44bps), resulting in a 27bps drop in the average yield to 15.76%.

The Nigerian Treasury Bills (NT‑Bills) market also strengthened, with yields falling across all segments. Short‑term yields declined by 13bps, mid‑term by 33bps, and long‑term by 56bps, bringing the average NT‑Bills yield down by 37bps to 17.01%.

Money Market Rates Ease on Improved Liquidity

Interbank funding rates moderated as liquidity conditions improved. The Open Repo (OPR) rate declined by 50bps to 22.00%, while the Overnight (O/N) rate fell by 43bps to 22.25%.

Naira Weakens Across Official and Parallel Markets

The Naira depreciated in both the official and parallel foreign exchange markets. At the official window, the currency weakened by 0.26% to N1,357.60 per dollar. In the parallel market, the Naira declined by 3.87%, closing at N1,420.00 per dollar. The continued pressure reflects persistent FX supply challenges and elevated demand across key market segments.

Market Outlook

The decline in the equities market highlights ongoing investor caution as macroeconomic conditions remain uncertain. However, the strength in fixed income instruments suggests a shift toward safer assets as yields become more attractive. Investors will continue to monitor corporate earnings, monetary policy developments, and foreign exchange liquidity in the coming weeks.

Disclaimer

This article is for informational purposes only and does not constitute financial or investment advice. Market data and company information are based on publicly available sources. Readers should conduct independent research or consult a licensed financial professional before making investment decisions. The author and publisher are not responsible for any financial losses or actions taken based on the information provided.

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