NGX loses N256bn as profit-taking deepens sell-off

Nigeria’s equities market extended its bearish run on Tuesday, shedding ₦256.05 billion in market value as sustained profit-taking pressure pushed the benchmark index lower and weakened investor sentiment.

The Nigerian Exchange All-Share Index declined by 0.16 per cent to close at 250,273.50 points, reducing its year-to-date gain to 60.83 per cent, while aggregate market capitalisation fell to ₦162.5 trillion.

The decline came amid broad-based selling pressure, with 34 stocks closing lower against 26 gainers, producing a negative market breadth of 0.8x.

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Chemical and Allied Products led the decliners, followed by Critical Minerals Financing Corporation PLC, ABC Transport PLC, Computer Warehouse Group PLC, Zichis Agro Allied Industries PLC and Neimeth International Pharmaceuticals PLC.

On the gainers’ side, Tripple Gee and Company, Livestock Feeds, NPF Microfinance Bank, Sovereign Trust Insurance and WAPIC Insurance recorded the most notable price increases.

Sectoral performance was mixed, with the banking sector emerging as the biggest drag on the market. The Banking Index fell 1.25 per cent, while the Consumer Goods Index declined marginally by 0.04 per cent.

In contrast, the Insurance Index gained 0.53 per cent, providing some support for the broader market. The Oil and Gas, Industrial and Commodity sectors ended the session relatively flat.

Trading activity also weakened significantly, pointing to reduced market participation as investors continued to lock in gains following the strong rally recorded by Nigerian equities this year.

Total volume traded fell 33.82 per cent to 579.25 million shares, while turnover declined 11.75 per cent to ₦36.07 billion.

The number of deals executed also dropped 23.78 per cent to 41,072 transactions.

The latest decline extends the market’s recent retreat from its record levels, although the benchmark index remains up 60.83 per cent year-to-date.

The persistent selling pressure has been attributed to profit-taking by investors seeking to realise gains from stocks that have recorded substantial price appreciation this year.

The negative market breadth, coupled with declining trading volume and deal count, indicates a more cautious trading environment as investors reassess positions after the prolonged equities rally.

The banking sector’s 1.25 per cent decline was particularly significant given the sector’s weight in the broader market and its influence on the movement of the All-Share Index.

Market activity is expected to remain under pressure in the near term if profit-taking continues, although the market’s year-to-date performance remains firmly positive.