Trading activities on the Nigerian Exchange (NGX) dipped sharply in the week under review, with market turnover falling by about 79 percent, even as the overall market capitalisation recorded a slight increase.
According to the NGX weekly market report, a total of 2.87 billion shares valued at ₦63.83 billion were traded in 80,229 deals during the period. The figures reflect just three days of trading, following the Federal Government’s declaration of December 25 and December 26 as public holidays to mark the Christmas celebration.
The performance represents a significant drop from the previous week, when investors exchanged 9.84 billion shares worth ₦305.84 billion in 126,584 deals across the Exchange. In comparative terms, both volume and value of transactions declined steeply, highlighting reduced market participation within the shortened trading window.
Despite the sharp fall in turnover, the NGX market capitalisation inched up slightly over the week, suggesting that price appreciation in some key stocks helped offset the low level of activity. This indicates that while fewer shares changed hands, gains in select equities were enough to support the overall value of the market.
Market watchers attribute the subdued trading to the holiday-shortened week, as many investors stayed on the sidelines ahead of and during the Christmas break. The reduced number of trading sessions limited opportunities for portfolio adjustments and fresh positions, resulting in lower volumes and fewer deals.
Analysts note that such patterns are typical in festive periods, when liquidity often thins and activity slows, but price movements in heavyweight stocks can still influence market capitalisation.
The NGX is expected to see a rebound in activity in the coming week as full trading resumes and investors reposition portfolios for the new year, guided by earnings expectations, macroeconomic signals, and outlooks for key sectors of the Nigerian economy.
