The equities market capitalisation of the Nigerian Exchange (NGX) fell by N1.32 trillion last week after minority shareholder selloffs in Dangote Cement Plc after a profit margin decline that affected non-controlling interest shareholders share of profit.

Generally, the market temperature was weak after interest rate hike caught yield hungry investors attention, resulting to portfolio rebalancing amidst flood of earnings releases in the local bourse.

As a result, the benchmark index lost 2.33% week-on-week to settle at 98,201.49 points, according to data from the local bourse. Consequently, the market capitalisation of the exchange retreated by 2.33% week-on-week to N55.61 trillion, with investors incurring a total loss of N1.32 trillion, stockbrokers at Cowry Asset Limited said in a note.

Market analysts highlighted that this adjustment led the year-to-date return of the index to moderate to 31.33%. Trading activity this week, however, displayed a positive trend.

The total traded volume rose by 25.85% week-on-week to 3.56 billion units. In contrast, the total number of weekly deals declined by 3.18% week-on-week to 42,871 trades.

Nevertheless, the total traded value for the week increased by 11.46% week-on-week to N47.22 billion, the investment firm stated. Data from the Nigerian Exchange revealed that market breadth was negative, with 47 weekly losers compared to 25 weekly advancers, indicating a predominance of declining stocks.

Sectoral performance throughout the week was notably weak, stockbrokers said in their separate notes. Industrial goods Index led the decline, registering losses of 5.89%. This was followed by the banking Index, which declined by 2.94%.

Additionally, the insurance, Oil & Gas, consumer Indices fell by 0.73%, 0.54%, and 0.27% week-on-week, respectively, driven by sell pressure across these sectors.

Among the notable performers at the close of the week were SOVRENINS, which appreciated by 14%, WAPIC and NEIMETH, both rising by 13%, OANDO, which increased by 12%, and JBERGER, which saw an 11% uptick.

Conversely, negative investor sentiment led to sell-offs in NSLTECH, which plummeted by 26%, OMATEK, which declined by 15%, CUTIX, which fell by 14%, UPL, which dropped by 12%, and ETERNA, which decreased by 10%.

These stocks emerged as the top losers for the week. Cowry Asset Limited said the bearish trend is expected to persist as market players continue to digest the outcome of the recently published economic data and the interest rate hike by the apex bank.

Market analysts said the continued rise in yield levels within the fixed income and money market spaces is likely to maintain the unattractiveness of equities, as investors opt for the appealing yields.

Nonetheless, a mildly positive performance is anticipated on the back of continued earnings releases and attractive dividend declarations by corporations in the coming week, Cowry Asset stated.