The Nigerian equities market suffered a setback on Thursday as investors lost an estimated N32 billion following widespread selloffs that brought a recent rally to an abrupt end. The decline interrupted the positive momentum that had characterized trading sessions in recent weeks, with major stocks recording losses that weighed heavily on the overall market performance.
At the close of trading, the Nigerian Exchange (NGX) All-Share Index dropped by 221.14 points, representing a 0.09 per cent decline to settle at 242,145.61 points. Market capitalization also slipped from previous levels, closing at N156.207 trillion. Market watchers attributed the downturn to profit-taking activities, as investors moved to lock in gains after a sustained period of market growth.
Analysts noted that the Central Bank of Nigeria’s tight monetary policy continues to influence investment decisions across the financial market. With the benchmark Monetary Policy Rate remaining at 26.50 per cent, many risk-averse investors are increasingly attracted to fixed-income instruments such as Treasury bills. In addition, the ongoing banking sector recapitalisation programme has prompted institutional investors to reposition their portfolios ahead of anticipated rights issues and public offers by major banks.
Despite the market decline, investor sentiment remained relatively positive, as gainers outnumbered losers by 26 to 21. FBN Holdings emerged as the top performer, rising by 9.96 per cent to close at N87.25 per share. McNichols gained 8.00 per cent, while United Bank for Africa advanced by 7.93 per cent. Veritas Kapital Assurance and Jaiz Bank also recorded notable gains, reflecting continued investor interest in selected banking and insurance stocks.
On the flip side, Eunisell Interlinked led the losers’ chart with a 10 per cent decline, followed closely by BUA Cement and CAP. Trading activity also slowed, with total volume traded falling by 10 per cent to 498.45 million shares valued at N34.87 billion. Japaul Gold & Ventures recorded the highest transaction volume, while Access Holdings, FBN Holdings, UBA, and Fidelity Bank remained among the most actively traded stocks. Although Thursday’s session ended in the red, analysts maintain that the long-term outlook for the Nigerian stock market remains strong, supported by corporate earnings growth, local investor participation, and ongoing economic reforms.
source: punch
