NGX Trading Volume Drops 58% as Deals Surge 33% Amid Investor Caution

Trading activity on the Nigerian Exchange (NGX) kicked off the week on a bearish note, with declines in market turnover and trading volume even as select stocks recorded impressive gains.

At the close of Monday’s session, a total of 502.99 million shares were traded in 39,945 deals, corresponding to a market value of ₦24.94 billion.

This reflected a 58% decline in volume and a 21% drop in turnover compared to the previous trading day on Friday, October 24.

However, the number of deals improved by 33%, signalling heightened market participation despite reduced liquidity.

The overall market capitalisation of the Exchange stood at ₦98.7 trillion, underscoring the market’s resilience amid cautious investor sentiment.

Leading the pack of advancers was Aradel Holdings Plc (ARADEL), which rose 10% to close at ₦869.00 per share, up from ₦790.00. The energy company has now appreciated 45.3% year-to-date, ranking 83rd among the best-performing stocks on the NGX. Over the past four weeks alone, Aradel’s shares have surged 55%, making it the third-best performer in that period.

Also on the gainers’ chart, N.E.M. Insurance Plc (NEM) climbed 9.7% to close at ₦32.90 per share, up from ₦30.00. The insurer has been one of the standout performers this year, gaining an impressive 200% year-to-date, ranking 19th on the NGX. NEM’s shares have also appreciated 20% in the past four weeks, signalling strong investor confidence.

Aso Savings & Loans Plc (ASOSAVINGS) joined the rally, rising 9.1% to ₦0.72 per share, compared to ₦0.66 in the previous session. The mortgage lender has advanced 44% year-to-date, ranking 85th among listed companies.

On the downside, Deap Capital Management & Trust Plc (DEAPCAP) emerged as the worst-performing stock of the day, declining 9.7% to ₦1.58 per share from ₦1.75. Despite recording a 33.9% year-to-date gain, the company has lost 8% of its value in the past month, raising investor caution.

Champion Breweries Plc (CHAMPION) also slipped 9.6% to ₦15.00 per share from ₦16.60. While the brewer has gained a remarkable 294% year-to-date, ranking eighth among all listed firms, recent pullbacks suggest some profit-taking among investors.

Rounding off the losers’ list, Red Star Express Plc (REDSTAREX) fell 8.6% to ₦10.05 per share from ₦11.00. The logistics company remains up 128% year-to-date, ranking 39th on the NGX, but has lost 9% of its value in the past four weeks, indicating short-term selling pressure.

Analysts say the declines in market turnover and volume point to investor caution amid ongoing economic uncertainties and mixed corporate earnings releases.

However, the uptick in the number of deals suggests that market participants remain active, particularly in growth and dividend-paying stocks.

With Aradel Holdings and NEM Insurance driving optimism in key sectors, traders expect selective buying to continue, though broader market sentiment may remain subdued in the near term.