Abstract：Naira stock market loses ₦365 billion in a week, marking its third consecutive decline and shaking investor confidence.
Last week, Nigeria's stock market posted its third straight weekly loss, shedding ₦365 billion in market value and falling to a one-month low. The All-Share Index (ASI) dropped by 0.55% to close at 105,955.13 points, while total market capitalization declined to ₦66.352 trillion.
Although sectors like insurance and consumer goods showed resilience, bearish sentiment prevailed overall, with selling pressure and profit-taking driving the market downward.
The sharp decline in the Naira stock market was largely driven by persistent bearish sentiment and investor concerns over short-term returns.
The market breadth turned negative, with 46 stocks declining and only 38 gaining. Meanwhile, global market uncertainty, especially triggered by U.S. tariff policies, heightened risk aversion among local investors. Portfolio rebalancing and alternating waves of bargain hunting and sell-offs further amplified market volatility.
Looking ahead, the Naira stock market is expected to continue grappling with external macroeconomic uncertainties and the ongoing digestion of corporate earnings forecasts.
Analysts anticipate that profit-taking and bargain hunting will remain dominant forces as more earnings reports and dividend announcements hit the market. Investors are advised to closely monitor global economic developments and local corporate actions to navigate potential headwinds in the weeks ahead.
