The Nigerian stock market suffered a significant setback on Monday as heightened investor caution erased N1.32 trillion from the Nigerian Exchange (NGX), extending the market’s losing streak to a second consecutive session. The wave of sell-offs pushed market capitalization down from N156.45 trillion to N155.13 trillion, highlighting growing concerns among investors following months of strong market gains.
The benchmark All-Share Index (ASI) also came under pressure, shedding 2,049.65 points, or 0.84 percent, to close at 241,749.11 points. Market analysts attributed the decline to persistent profit-taking and reduced appetite for risk, particularly in large and medium-cap stocks. Companies such as BUA Cement, NASCON Allied Industries, PZ Cussons Nigeria, Cadbury Nigeria, and First HoldCo recorded notable losses as investors moved to secure profits and reduce exposure.
Investment experts noted that the market’s recent downturn reflects a cooling phase after an extended rally. According to market operators, the sharp decline in market breadth, with 44 stocks closing lower against just 19 gainers, signals a more cautious approach among investors. However, some analysts believe the current weakness could create opportunities for strategic investors seeking attractive entry points in fundamentally strong stocks.
Despite the broad market decline, a number of companies delivered impressive gains. International Breweries led the winners’ chart with a 9.77 percent rise to close at N14.60 per share, while Nigerian Aviation Handling Company (NAHCO) gained 8.36 percent to N177.00. UACN, Daar Communications, and Vitafoam Nigeria also posted strong performances, offering some relief amid the market-wide sell-off.
Interestingly, trading activity remained robust despite the bearish sentiment. Total traded volume climbed by 18.7 percent to 523.54 million shares valued at N22.27 billion across 59,945 deals. FCMB Group emerged as the most actively traded stock by volume, followed by International Breweries and Access Holdings. While investors continue to monitor market conditions closely, analysts say the possibility of a rebound remains on the horizon, provided confidence returns and profit-taking pressures begin to ease.
source: leadership
