The Nigerian equities market extended its bearish trend on Wednesday as investors continued to take profits from banking and insurance stocks, dragging overall market performance slightly lower. Trading on the Nigerian Exchange Limited closed on a cautious note, with the All-Share Index dipping by 0.06% to settle at 194,370.20 points, down from 194,484.61 points recorded in the previous session.
This mild downturn translated into a loss of approximately N73.43 billion in market value, as total capitalisation declined to N124.75 trillion from N124.83 trillion. The drop reflects a shift in investor sentiment, as traders moved to lock in gains from recent rallies in financial stocks, particularly among tier-1 banking institutions.
Despite the negative close, market activity showed mixed signals. Trading volume surged by 21% to 1.4 billion shares, indicating sustained participation, although the total value of transactions fell by 13.4% to N46.2 billion. Insurance player FTG Insure led in trading volume, while Zenith Bank dominated in trade value, underscoring continued investor interest in fundamentally strong names even amid cautious sentiment.
Sectoral performance revealed pressure across key financial segments. The NGX Banking and Insurance indices declined as profit-taking weighed heavily on sentiment. However, the Consumer Goods sector offered some relief, supported by renewed demand in major food and beverage companies such as BUA Foods and Dangote Sugar. Gains in these stocks helped soften the broader market downturn.
Market breadth remained negative, with 54 losers outweighing 22 gainers. Notable advances were recorded in Jaiz Bank, Okomu Oil Palm, and Trans-Nationwide Express, while ABC Transport and Skyway Aviation Handling suffered steep declines. Analysts say the current trend signals a phase of sector rotation, with investors gradually shifting focus toward resilient consumer and energy stocks while trimming exposure to financial services amid ongoing earnings releases.
source: punch