The Nigerian equities market last week, extended its bearish run, declining by N1.89 trillion as investors sustained profit taking during the week. 

The market depreciated by 1.19 per cent to close at N156.624 trillion from N158.513 trillion reported the previous week.

The NGX All Share Index also depreciated by 2954.40 basis points to 242619.20 points from 245573.60 points recorded two weeks ago.

The market which closed on negative note, bringing the year to date  return moderating to 56.01 per cent.

The market breadth was negative  with  59 stocks declining against 26 gainers,  signalling that the negative sentiment was relatively broad-based rather than concentrated in a few large-cap stocks.

The downturn in the market was attributed  to continued profit-taking following the market’s strong year-to-date performance. 

Trading activity during the week represented a mixed picture, suggesting that the decline occurred amid heightened participation rather than a complete withdrawal of investors. 

While the number of deals fell by 14.41 per cent  week on week to 224,146,  trading volume surged by 126.78 per cent to 12.153 billion shares, while transaction value increased by 26.61 per cent to N176.29 billion. 

The divergence between fewer deals and substantially higher volume indicates that market activity was concentrated in larger transactions, potentially reflecting institutional repositioning and portfolio adjustments.

However, the sharp increase in volume amid a falling index  also suggest that selling pressure was becoming more pronounced in selected counters.

Analysis of the transaction showed that the Financial Services Industry  led the activity chart with 11.212 billion shares valued at N88.991 billion traded in 102,246 deals, contributing 92.25 per cent and 50.55 per cent to the total equity turnover volume and value respectively. 

The ICT Industry  followed with 246.127 million shares worth N51.605 billion in 27,169 deals.

Third position went to Services Industry, with a turnover of 198.195 million shares worth N1.995 billion in 13,747 deals.

Trading in the top three equities, namely Fortis Global Insurance Plc, Cornerstone Insurance Plc and Consolidated Hallmark Holdings Plc, accounted for 9.488 billion shares worth N36.219 billion in 1,781 deals, contributing 78.07 per cent and 20.57 per cent to the total equity turnover volume and value respectively.

Sectoral performance reinforced the  nature of the market weakness, with all sectors closing in negative territory. The Insurance sector recorded the highest decline, falling by 2.72 per cent, driven by sell-offs in Cornerstone Insurance, Mansard Insurance and Wapic insurance which more than offset gains recorded in International General Insurance and  Sovereign insurance . Consumer Goods followed with a 1.91 per cent decline, pressured by Unilever Nigeria Plc, Dangote Sugar and Buafoods.