The Nigerian equities market ended the week on a weak note, with analysts forecasting a cautious to slightly bearish outlook as year-end portfolio rebalancing, profit-taking, and elevated fixed-income yields continue to suppress risk appetite.

The benchmark Nigerian Exchange (NGX) All-Share Index (ASI) closed at 143,722 basis points, representing a 2.24 percent decline week-on-week.

Market capitalisation fell by 2.23 percent to N91.41 trillion, wiping off about N2.09 trillion in investors’ wealth. The year-to-date return moderated to 39.6 percent.

Analysts at Cowry Research said the downtrend was largely driven by heightened profit-taking as institutional investors rebalance portfolios ahead of year-end.

They expect the market to maintain a “sideways-to-slightly-bearish” pattern next week, citing the absence of strong positive catalysts.

They advised investors to focus on companies with strong fundamentals, while taking advantage of oversold counters likely to rebound.

Cordros Securities also noted that despite a softer inflation figure, usually supportive of monetary policy easing, investor sentiment remained decidedly bearish.

The firm expects trading to stay weak until liquidity improves, adding that attention will shift to next week’s Monetary Policy Committee meeting, where it anticipates a one hundred basis points policy rate cut.

Market activity slowed considerably as turnover declined. The Nigerian Exchange recorded 2.668 billion shares worth N106.264 billion traded in 107,998 deals, compared with 7.325 billion shares valued at N156.425 billion last week. The Financial Services sector dominated activity with 1.820 billion shares valued at N44.806 billion.

The three most actively traded stocks by volume were Access Holdings Plc, Tantalizers Plc, and Zenith Bank Plc, which jointly accounted for 1.057 billion shares worth N24.652 billion.

Market breadth remained weak, with only 20 gainers against 60 losers. NCR Nigeria Plc led the advancers with a sixty-point five per cent weekly increase, followed by University Press Plc, up seventeen-point six percent; Tantalizers Plc, up seventeen point three per cent; Caverton Offshore Support Group Plc, up seventeen percent; and UAC of Nigeria Plc, which rose sixteen-point seven percent.

On the losers’ chart, International Energy Insurance Plc shed 22 point one per cent, while McNichols Plc, Veritas Kapital Assurance Plc, AIICO Insurance Plc, and LivingTrust Mortgage Bank Plc all recorded double-digit losses.

Sectoral performance mirrored the downbeat mood across the market. The Insurance Index posted the biggest decline at 7.1 percent, followed by the Industrial Goods Index at 4.5 percent.

The Banking Index fell three point nine per cent, reflecting selloffs in Access Holdings Plc, United Bank for Africa Plc, and Zenith Bank Plc.

The Consumer Goods and Oil and Gas indices also closed lower, down zero point four per cent and one point nine per cent, respectively.

Although the market remains under pressure, analysts believe opportunities still exist for investors willing to take measured positions in fundamentally robust companies.

With valuations becoming more attractive and the earnings season approaching early next year, bargain-hunters may find compelling entry points—provided they remain cautious and disciplined.

For now, the equities market is expected to trade quietly as investors await clearer monetary policy signals and as year-end activity continues to thin out liquidity.

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