Opinions remain divided as profit taking reduces year-over-year growth to 28.4%.

The bearish sentiment on the Nigerian Exchange (NGX) persisted last week due to profit-taking, causing the Year-to-Date (YtD) growth of the stock market to drop from 29.9% to 28.4%.

The profit-taking across various sectors led to a decline in the benchmark NGX All-Share Index (ASI), which closed at 95,973.45 points, down from 97,100.31 points, extending the bearish trend to two consecutive weeks. As a result, Month-to-Date (MtD) returns settled at -1.8%.

The market capitalization also fell by over N2 billion, closing at N55.129 trillion compared to N55.131 trillion the previous week.

Analysts noted that the market’s mixed momentum and sentiment reflect its volatile dynamics, presenting opportunities to buy low and sell high. Many listed companies have become undervalued due to recent declines in share prices. The pullbacks are largely driven by selloffs in high-cap stocks, sector rotations, and portfolio rebalancing. Despite the economic challenges, corporate financials reveal the positions of many companies on the Exchange.

Sector-specific performance showed a 3.5% increase in the Oil and Gas Index, a 0.4% rise in the Banking Index, and a 1.9% gain in the Insurance Index. In contrast, the Industrial Goods Index fell by 4.9% and the Consumer Goods Index decreased by 1.4%. Analysts have observed that the government’s economic reforms, including fiscal and monetary policies, have yet to set the nation’s economy on a recovery path, hindered by implementation issues and fluctuating oil production. Additionally, the Naira continues to depreciate while oil prices rebound below $80 per barrel on the international market.

Last week, Regency Alliance Insurance announced a board meeting, while Oando reported completing the $783 million acquisition of ENI’s subsidiary Nigerian Agip Oil Company. Airtel Africa updated the Exchange on its ongoing share buyback program, Jaiz Bank announced the appointment of a new non-executive director, and MTNN, Cutix, and Ucap reported insider dealings in their shares.

Looking ahead, InvestData Consulting expects mixed sentiment to persist due to bargain hunting, profit-taking, and sector rotation amid an oversold market. Investors are likely to continue repositioning their portfolios and seizing opportunities from market pullbacks to buy into value stocks.