Nigerian Stocks Slip N1.97tn Amid IPO Jitters, Gainers Defy Trend
Nigerian equities market shed N1.97 trillion in market cap week-on-week, closing at N157.587 trillion (-1.24%); All Share Index fell 1.6% to 243,052.74 points. Heavy selling in insurance, banking and industrial stocks ahead of the Dangote Refinery IPO opening Sept 14 drove the decline, with only nine gainers against eighty losers.
Despite the weekly loss, year-to-date return remains strong at 56.19%, showing underlying resilience. Trading activity dropped to 3.65 billion shares worth N130.15 billion, down from previous week. Notable gainers were NGX Group (+13.85% to N148), Ellah Lakes (+13.33% to N10.20) and Seplat Energy (+10.00% to N14,907.80), offering pockets of strength. The market also saw new listings: FGN Savings Bonds and additional Dangote Sugar shares from a rights issue.
Investors should watch the Dangote Refinery IPO subscription window opening Sept 14 and the FTSE Russell frontier market reclassification effective Sept 21, which could shift sentiment. Consider whether to hold, buy the dip, or await IPO allocation, keeping in mind the narrow breadth and sectoral weakness in finance and industry.