In a dramatic shift from the prior week’s frenzy, trading activity on the Nigerian Exchange (NGX) contracted sharply during the week ending December 26, 2025. A holiday-shortened schedule and potential year-end portfolio repositioning by investors created a significantly quieter market landscape, offering a crucial data point for understanding market liquidity and investor sentiment cycles.
Market Performance at a Glance:
Investors traded a total turnover of 2.876 billion shares worth N63.832 billion across 80,229 deals this week. This stands in stark contrast to the preceding week’s robust activity of 9.849 billion shares valued at N305.843 billion exchanged in 126,584 deals. The reported 379.1% decline in transaction value is a startling figure that requires context: it primarily reflects a return to more normalized volumes after an anomalously high week, compounded by only three trading days due to the Christmas holidays on Thursday and Friday.
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Despite the precipitous drop in trading volume and value, the market’s valuation metrics told a different story. The NGX All-Share Index (ASI) appreciated by 0.97% to close at 153,539.83 points, while Market Capitalisation rose by 0.98% to N97.890 trillion. This divergence—falling transactions but rising prices—often signals a market driven by selective buying in major capitalised stocks or a lack of selling pressure, rather than broad-based, high-volume participation.
Sectoral Analysis: Where Did the Action Concentrate?
As is typical, the Financial Services Industry dominated activity, accounting for 68.99% of volume (1.984 billion shares) and 51.20% of value (N32.680 billion). This underscores the sector’s enduring liquidity and its central role in the Nigerian equity market. The Investment Industry and Conglomerates Industry followed, highlighting where residual investor interest was focused during the quiet period.
Notably, trading in the top three equities—Abbey Mortgage Bank Plc, VFD Group Plc, and Custodian Investment Plc—accounted for over half (51.15%) of the total equity turnover volume. This high concentration in a few counters is a hallmark of a thin trading week and suggests most market participants were on the sidelines.
Market Breadth and Movers & Shakers:
Market breadth, a key indicator of underlying strength, softened slightly. Forty-four equities gained value (down from 55 the prior week), while thirty declined (down from 36). Seventy-three equities closed unchanged, indicating a holding pattern for many stocks. The top gainers for the week included Aluminium Extrusion Industries and International Breweries, while Legend Internet and Champion Breweries led the losers’ table. [[PEAI_MEDIA_X]]
Corporate Actions and New Listings:
The week saw significant corporate actions. The NGX listed an additional 2.348 billion ordinary shares of Chams Holding Company Plc, arising from a rights issue. This increased the company’s total issued shares to 9 billion, a move that typically increases market float but can dilute earnings per share in the short term. Furthermore, trading commenced for Fidson Healthcare Plc’s rights issue of 600 million shares at N35.00 per share. Such capital-raising activities are critical for company growth but can temporarily absorb market liquidity.
Expert Context: Interpreting the Data
A 379.1% decline is not a cause for panic but a signal to decode. Shortened trading weeks invariably compress activity. More importantly, comparing to an outlier week of exceptionally high volume creates a distorted percentage change. The key takeaways for investors are:
1. Liquidity Sensitivity: The market remains highly sensitive to seasonal and external factors.
2. Selective Strength: Index gains amid low volume suggest support for heavyweight stocks.
3. Sectoral Resilience: Financials continue to be the market’s engine room, even in quiet times.
Looking ahead, market activity is likely to remain subdued through the festive period, with a potential rebound in early January as investors redeploy capital and set strategies for the new year.
Edited by Olawunmi Ashafa
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