The Nigerian Exchange (NGX) started the week on a bearish note as investors wiped off an estimated N1.32 trillion from the equities market amid widespread profit-taking across major stocks. The sell-off, which affected 46 listed companies, outweighed gains recorded by just 19 stocks and pushed the market deeper into negative territory. Investors moved to lock in profits from previous rallies, particularly in industrial goods, banking, and consumer goods counters, resulting in one of the market’s most significant single-day declines in recent weeks.
At the close of trading on Monday, the NGX All-Share Index dropped by 2,049.65 points, or 0.84%, to settle at 241,749.11 points from 243,798.76 points recorded on Friday. Consequently, market capitalization fell from N156.44 trillion to N155.13 trillion. While the decline reduced the market’s year-to-date return to 55.35%, analysts noted that the pullback reflects investor profit-taking rather than any major deterioration in corporate fundamentals or broader market conditions.
Leading the list of losers were some of the market’s biggest names. BUA Cement shed 9.99% to close at N306.20, while PZ Cussons fell 10% to N81.00, making it the day’s worst-performing stock by percentage decline. Cadbury Nigeria, NASCON Allied Industries, FCMB Group, and First HoldCo also recorded notable losses as investors exited positions after recent gains. Banking heavyweights were not spared, with Zenith Bank, GTCO, and UBA all closing lower, adding to the pressure on the overall market.
Despite the broad sell-off, a handful of stocks delivered impressive gains. Nigeria Infrastructure Debt Fund (NIDF) emerged as the top performer, rising 9.97% to N163.30 and trading above its previous 52-week high. International Breweries, NAHCO, UAC of Nigeria, and Daar Communications also posted strong gains, providing some relief amid the market downturn. The Consumer Goods Index was the only sector to finish in positive territory, while banking, insurance, industrial, and oil and gas indices all recorded declines.
Interestingly, trading activity remained strong despite the negative sentiment. Total volume traded climbed by 18.66% to 523.54 million shares, while transaction value rose to N22.28 billion across 59,945 deals. FCMB recorded the highest trading volume, while SEPLAT led the value chart. Market analysts believe the current correction could pave the way for healthier price discovery as investors reposition their portfolios. Although profit-taking may continue in the short term, expectations remain that strategic buying and portfolio rebalancing will help stabilize the market in the coming sessions.
source: nairametrics
