Nigeria’s equity market extended its losses into a third consecutive trading session on Friday, closing the week on a downward trend driven by widespread profit-taking. Key performance indicators declined by 0.46%, reflecting sustained investor caution amid volatile trading activity. The bearish sentiment saw 39 stocks retreat compared to 30 advancing counterparts, highlighting a subdued close to the week.
Market capitalization shed ₦425 billion ($288 million*) to settle at ₦91.501 trillion, as the benchmark All-Share Index retreated 671.81 points to 144,628.20. Insurance sector stocks bore the brunt of the sell-off, with Lasaco Assurance and International Energy Insurance both plunging the maximum allowable 10% to ₦4.05 and ₦3.33 respectively. Linkage Assurance joined the slide with a 10% drop to ₦2.43, while Nem Insurance and Meyer Paint lost 9.97% and 9.95% of their value respectively.
The financial sector provided rare bright spots amid the market slump. Mutual Benefits led gainers with a 10% surge to ₦3.85, while regional lender Wema Bank climbed 9.9% to ₦22.75. Hospitality group Ikeja Hotel rose 9.95% to ₦22.65, and investment firm Deap Capital gained 9.52% to close at ₦1.61. Trading volumes contracted sharply, with 1.37 billion shares changing hands – a 44% decline from Thursday’s 2.46 billion – while deal counts fell by 25% to 32,065 transactions.
Universal Insurance dominated activity with 308.8 million units traded, followed by AIICO Insurance’s 117.99 million share block. The insurance sector accounted for four of the five most actively traded stocks, underscoring its outsized influence on Friday’s session. Analysts noted the subdued turnover of ₦13.9 billion represented a 37% decrease from the previous day’s ₦22.22 billion, suggesting reduced institutional participation.
The persistent bear run comes amid mixed performance across African markets, with Nigeria’s equity sector remaining sensitive to foreign exchange fluctuations and corporate earnings expectations. While short-term traders capitalized on recent rallies in insurance and financial stocks, the broader market continues to navigate inflationary pressures and monetary policy tightening measures implemented by the Central Bank of Nigeria. Market watchers anticipate increased volatility in the coming weeks as investors reassess portfolio allocations ahead of half-year financial disclosures.
*Currency conversion based on Central Bank of Nigeria official rate of ₦1,476/$ at time of writing
