The Nigerian Exchange (NGX) All Share Index (ASI) closed the week 0.8% lower week-on-week, weighed down by losses in MTNN (-3.3%), WAPCO (-5.2%), ZENITHBANK (-3.0%), GTCO (-2.3%) and OANDO (-6.9%).

Consequently, the month-to-date and year-to-date returns moderated to +3.4% and +40.5%, respectively. Market activity was mixed, with trading volume rising 76.7% week-on-week while value traded declined 33.2% week-on-week.

The market opened the week on a strong footing, buoyed by sustained buying interest, particularly in insurance stocks, following prior week’s approval of the Nigerian Insurance Industry Reform Act (NIIRA). However, momentum faded midweek as profit-taking in oil and gas, consumer goods, industrial goods, banking stocks tempered overall gains.

Sector performance was largely negative, as the Oil & Gas (-1.4%), Consumer Goods (-0.9%), Industrial Goods (-0.8%), and Banking (-0.2%) indices all closed lower, leaving the Insurance index (+8.2%) as the sole gainer.

Analysts predict that in the near term, profit-taking will persist, but concentrated in stocks that lack strong fundamentals, while selective buy interest is likely to emerge in fundamentally-sound equities.