Nigerian Stock Market Loses N2.28 Trillion as Profit-Taking Triggers Third Straight Decline
The Nigerian stock market extended its losing streak on Wednesday, shedding a massive N2.28 trillion in market value as investors continued to lock in profits from recent gains. The sustained sell-off marked the third consecutive day of losses on the Nigerian Exchange (NGX), highlighting growing caution among investors despite the market’s strong performance earlier in the year.
The bearish sentiment pushed the All-Share Index down by 3,736.05 points, representing a decline of 1.51 percent to close at 243,132.61 points. As a result, the market capitalization of listed equities fell to N155.94 trillion. While the market still maintains an impressive year-to-date return of 56.24 percent, the recent downturn reflects increasing pressure from investors cashing out on highly valued stocks.
Market watchers linked the sharp decline to profit-taking activities in major blue-chip and mid-cap companies. Stocks such as MTN Nigeria, Lafarge Africa, Nigerian Exchange Group, FBN Holdings, Nigerian Breweries, and Zichis Agro Allied Industry recorded notable losses, contributing significantly to the market’s decline. Analysts noted that many investors are choosing to secure gains after months of strong market rallies.
Investor sentiment remained weak throughout the trading session, with market breadth closing firmly in negative territory. A total of 43 stocks recorded losses compared to just 15 gainers. Lafarge Africa led the losers’ chart after dropping nearly 10 percent, while Zichis Agro Allied Industry, Learn Africa, John Holt, and Consolidated Hallmark Insurance also suffered substantial declines. On the positive side, Abbey Mortgage Bank topped the gainers’ list, followed by International Energy Insurance, Tripple Gee and Company, Universal Insurance, and Royal Exchange.
Despite the market downturn, trading activity remained robust as investors exchanged 922.97 million shares worth N42.27 billion across 69,332 deals, representing a significant increase in turnover. Sterling Financial Holdings dominated trading volumes, followed by Access Holdings, Linkage Assurance, VFD Group, and Ellah Lakes. Analysts at Cowry Assets Management and Apt Securities believe the market may remain under pressure in the near term as profit-taking continues to influence investor decisions, although strong trading volumes suggest active participation and sustained interest in the equities market.
source: punch