The Nigerian Exchange (NGX) began the month of July with a significant setback as investors lost approximately N2.39 trillion in a broad market selloff driven by profit-taking across major stocks. The bearish sentiment weighed heavily on key sectors, including banking, industrial goods, oil and gas, and consumer goods, reversing some of the gains recorded during the market’s historic rally earlier in the year.
Market data showed that the benchmark All-Share Index (ASI) declined by 1.63% to close at 225,690.07 points, down from 229,419.18 points in the previous trading session. Consequently, market capitalisation fell to N144.82 trillion, while the market’s year-to-date return moderated to 45.03%. Analysts say the decline reflects investors’ decision to lock in profits after several months of strong market performance.
Heavyweight stocks led the downturn, with Aradel Holdings, Dangote Cement, Zenith Bank, and Transcorp emerging as some of the biggest losers. Aradel recorded the maximum daily decline of 10% to close at N1,275.30, while Dangote Cement dropped 7.48% and Transcorp fell 6.99%. The banking sector also came under pressure as Zenith Bank lost 4.50%, FCMB shed 4.35%, GTCO declined 2.40%, and UBA slipped 1.04%, contributing to a 1.49% drop in the NGX Banking Index.
The weakness extended across most sectors of the market. The NGX Oil and Gas Index posted the steepest decline, falling 4.41%, followed by the Industrial Index, which dropped 3.65% due largely to losses in Dangote Cement. The Commodity Index lost 2.91%, while the Consumer Goods Index declined 0.93%. Insurance stocks stood out as the only bright spot, with the Insurance Index gaining 0.42%, supported by strong performances from Guinea Insurance and Regal Insurance.
Trading activity also slowed considerably as investors adopted a cautious approach. Total trading volume fell by 49.50% to 488.12 million shares, while transaction value plunged 65.09% to N13.96 billion. Market breadth remained negative, with 33 declining stocks compared to 19 gainers. Despite the current correction, the NGX remains one of Africa’s best-performing equity markets this year. However, analysts expect near-term volatility to persist as investors continue profit-taking, although bargain hunting and portfolio rebalancing could help stabilise the market in the coming weeks.
source: nairametrics
