The Nigerian equities market suffered another setback as sustained profit-taking dragged the market into a deeper slump, wiping off ₦368 billion in value. The market closed Wednesday in the red, extending its bearish run as weak investor sentiment weighed heavily on key sectors.
The All-Share Index (ASI) dipped by 0.42 percent, losing 580.48 points to settle at 138,157.16. Market capitalization also fell from previous levels to ₦87.416 trillion, underscoring the widespread selloffs across large and medium-cap stocks. Companies such as Nigerian Breweries, Aradel Holdings, PZ Cussons, CAP Plc, and AXA Mansard Insurance were among the major drags on performance.
Market watchers say the downward spiral is fueled by persistent profit-taking and concerns about the economic climate. Afrinvest Limited noted that trading is likely to remain cautious in the short term, as investors weigh risks against potential returns. “Lingering profit-taking and weak investor sentiment will continue to exert pressure on key sectors,” the firm warned in its market outlook.
Despite the negative breadth, with 43 decliners against 14 gainers, some stocks still managed to post impressive gains. Secure Electronic Technology led the pack with a 9.09 percent rise to close at ₦0.96 per share. Others like Consolidated Hallmark Holdings, John Holt, Cadbury Nigeria, and Wema Bank also recorded notable price appreciation.
Meanwhile, trading activity saw an uptick as total volume rose 19.34 percent to 482.76 million units, worth ₦19.67 billion across 28,193 deals. Access Holdings, Fidelity Bank, GTCO, UBA, and AIICO Insurance dominated market turnover, reflecting investors’ preference for banking and financial stocks despite the overall downturn. Analysts suggest that while bargain-hunting opportunities exist, caution remains the prevailing mood among traders.
Source: Leadership