- ABC Transport Leads Nigerian Gainers as Equities Fall for Fourth Week
ABC Transport led gains on the Nigerian Exchange during the week ending October 23, but its 20.66 per cent advance stood against a broader market that declined for a fourth consecutive week as selling pressure spread across insurance, oil and gas, banking and consumer stocks.
The NGX All-Share Index fell 0.13 per cent to 247,222.27 points from 247,539.73, erasing ₦210.89 billion in market value. Capitalisation closed at ₦160.519 trillion, although the market retained a year-to-date return of 58.87 per cent.
The weekly loss was smaller than the declines of 0.52 per cent, 0.97 per cent and 0.33 per cent recorded during the preceding three weeks. That moderation suggests selling may be losing momentum, but market breadth provides little evidence of a decisive recovery.
Fifty-five equities declined, up from 30 a week earlier, while only 20 advanced, down sharply from 50. Another 71 stocks were unchanged. Nearly three companies therefore fell for every one that gained, demonstrating that the modest index decline understated the weakness experienced across individual portfolios.
Friday offered an encouraging signal. The index advanced 0.92 per cent, adding 2,265.33 points, while market capitalisation rose ₦1.47 trillion from ₦159.048 trillion. The rebound pulled the market away from Thursday’s weekly low of 244,956.94 points.
Whether that late buying represents the beginning of renewed accumulation or merely bargain hunting after four weeks of losses will become clearer in subsequent sessions. A sustainable recovery would require stronger breadth rather than another rally concentrated in a handful of highly capitalised stocks.
Trading activity increased even as prices weakened. Investors exchanged 2.024 billion shares worth ₦110.773 billion through 173,113 deals, compared with 1.659 billion shares valued at ₦98.088 billion through 184,632 deals previously.
Volume rose approximately 22 per cent and value increased 13 per cent, while the number of deals declined. The combination points towards larger average transactions, suggesting institutional or high-value trades played an important role during the week.
Higher turnover during a falling market can carry two interpretations. It may reflect investors using weaker prices to build positions, providing a base for recovery. It can also indicate determined selling, with buyers requiring price concessions before absorbing supply. Friday’s rebound supports the first interpretation, but the negative breadth keeps the second in view.
Financial services remained the market’s liquidity centre, accounting for 1.111 billion shares worth ₦53.908 billion through 81,787 deals. The sector contributed 54.89 per cent of total volume and 48.66 per cent of turnover value.
Consumer-goods stocks followed with 394.039 million shares valued at ₦9.811 billion, while agriculture generated 147.170 million shares worth ₦2.821 billion. Multi-Trex Integrated Foods, Zenith Bank and Livestock Feeds jointly accounted for 521.565 million shares worth ₦19.093 billion, representing 25.76 per cent of volume and 17.24 per cent of value.
The concentration shows that increased market activity was not evenly distributed. A quarter of all shares traded came from only three companies, underscoring the continuing importance of a limited group of liquid securities to price discovery on the exchange.
ABC Transport emerged as the strongest performer, rising to ₦7.30 from ₦6.05. The gain came as the company obtained approval to raise ₦6.5 billion in fresh capital, giving investors a corporate catalyst around which to reassess its prospects.
AVA Capital advanced 17.74 per cent to ₦7.30, while Caverton Offshore Support Group gained 17.07 per cent to ₦4.80. Fidelity Bank climbed 14.01 per cent to ₦24.00, outperforming a banking index that declined 0.67 per cent during the week and 7.25 per cent over the month.
Fidelity’s performance shows that investors were discriminating within sectors rather than abandoning them uniformly. Company-specific earnings expectations, corporate actions and valuation differences can produce divergence even when the sector benchmark is weakening.
Multi-Trex gained 10 per cent to ₦0.66, LivingTrust Mortgage Bank rose 9.90 per cent to ₦3.22 and Meyer advanced 9.72 per cent to ₦17.50. Critical Minerals Financing Corporation, Thomas Wyatt Nigeria and NASCON Allied Industries completed the leading gainers with increases ranging from 7.31 per cent to 7.85 per cent.
The losing side was more extensive. UPDC Real Estate Investment Trust suffered the steepest percentage decline, falling 17.26 per cent to ₦17.50 after losing 11.88 per cent in the previous week. Consecutive double-digit declines suggest sustained repricing rather than a single-session adjustment.
Omatek Ventures fell 12.50 per cent to ₦1.40 after gaining 19.40 per cent a week earlier. Livestock Feeds dropped 10.26 per cent to ₦17.05 following its previous 44.49 per cent surge. These reversals illustrate the volatility that can accompany momentum-driven trading in lower-priced or less-liquid securities.
Nigerian Exchange Group declined 10.29 per cent to ₦152.50, while Vitafoam Nigeria lost 10 per cent to ₦174.60. University Press, Regency Alliance Insurance, CWG, International Breweries and Tripple Gee also recorded substantial losses.
Aradel Holdings posted the largest absolute price decline, losing ₦94.90 to close at ₦1,405.00. The 6.33 per cent fall followed an 8.93 per cent gain in the preceding week and contributed to the oil and gas index’s 2.55 per cent retreat.
Oil and gas remained the strongest sector over the year, with a 126.04 per cent return, despite surrendering part of its previous gains. Insurance fell 2.79 per cent during the week and remained 11.76 per cent lower year to date, making it the clearest laggard among the major indices.
Industrial goods provided the principal sectoral counterweight, rising 1.95 per cent and lifting its year-to-date return to 87.56 per cent. The commodity index declined 1.78 per cent, while consumer goods fell 0.55 per cent.
The market’s immediate outlook rests on whether Friday’s buying can broaden beyond selected stocks. Four successive weekly losses suggest investors are protecting gains after a powerful year, but narrowing declines indicate that price discovery may be approaching a more balanced phase.
For investors, the week’s lesson is that a strong annual index return does not remove company-specific risk. Nigeria’s market remains profitable on a year-to-date basis, yet weak breadth, sharp reversals and sector divergence demand selectivity. The next durable advance will require more than headline resilience; it will require a larger proportion of listed companies to participate.
