NGX Loses N107bn as Profit-Taking Deepens Bearish Sentiment in Nigerian Stock Market
Trading activities on the Nigerian Exchange Limited closed on a slightly negative note on Wednesday as investors continued to take profits in selected equities. The selling pressure pushed key market indicators into the red, reflecting cautious sentiment among market participants despite the market’s strong performance earlier in the year.
Market data showed that the benchmark NGX All-Share Index slipped by 0.09 percent to close at 195,898.53 points, compared with the previous trading session. The decline followed sell-offs in some large- and mid-cap stocks as investors locked in gains after recent rallies.
As a result, the overall market capitalisation dropped by N107.57bn to close at N125.75tn. Despite the marginal loss recorded during the session, the market maintained positive momentum overall, with the month-to-date gain standing at 1.6 percent and the year-to-date return moderating slightly to 25.89 percent.
The downturn was mainly driven by losses in stocks such as Presco Plc and UAC of Nigeria Plc, both of which fell by 10 percent. Shares of Dangote Cement Plc also declined by 0.6 percent, adding further pressure on the market during the trading session.
Trading activity on the exchange also weakened, with investors exchanging 671.27 million shares valued at N26.13bn across 58,792 deals. This represented a decline of 8.61 percent in trading volume, 5.18 percent in value, and 9.31 percent in the number of transactions compared with the previous session. Wema Bank Plc emerged as the most actively traded stock by both volume and value, recording 106.36 million shares worth N2.75bn.
Sectoral performance across the market remained mixed. The Industrial Goods index led the gainers with a 1.42 percent rise, while the Banking index posted a marginal increase of 0.04 percent. On the downside, the Commodities sector fell by 1.30 percent, while the Insurance, Consumer Goods, and Oil and Gas indices declined by 0.44 percent, 0.43 percent, and 0.06 percent respectively.
Market breadth also reflected weak investor sentiment as 40 stocks recorded losses compared with 29 gainers, translating to a negative breadth ratio of 0.7. Among the top gainers were NGX Group Plc and Premier Paints Plc, which rose by 10 percent and 9.9 percent respectively. Other notable gainers included Omatek Ventures Plc, Prestige Assurance Plc, and HMC Allied Plc.
source: punch