The Nigerian stock market suffered a major setback on Wednesday after investors cashed in on recent gains, wiping N800 billion off the Nigerian Exchange Limited (NGX). The sharp wave of profit-taking brought an end to the market’s impressive bullish run, with the All-Share Index (ASI) falling by 1,241.19 points, or 0.50 per cent, to close at 245,418.37 basis points. As a result, the total market capitalisation declined to N158.319 trillion, reflecting the day’s weaker performance.
The market downturn was largely driven by heavy sell-offs in some of the Exchange’s biggest companies. Consumer goods and industrial giants such as Nestlé Nigeria, BUA Foods, UACN, Guinness Nigeria, and MeCure Industries recorded notable price declines, dragging the overall market lower. Despite the losses, market sentiment remained relatively positive, with 37 stocks recording gains against 27 losers, suggesting that investors are still actively seeking opportunities across selected sectors.
Analysts noted that trading activity remained robust throughout the session, pointing to sustained institutional participation. A significant portion of the day’s transactions was concentrated in First Holdco, which accounted for more than two-thirds of the total value traded. They also observed continued investor confidence in the banking sector, as strong buying interest in tier-one bank stocks helped cushion the broader market decline.
Among the day’s top performers, Cadbury Nigeria, Trans-Nationwide Express, and Unilever Nigeria each gained the maximum daily limit of 10 per cent, closing at N62.70, N3.08, and N137.50 per share, respectively. Thomas Wyatt Nigeria followed closely with a 9.95 per cent gain to N4.09, while NASCON Allied Industries advanced 8.89 per cent to settle at N196 per share. On the flip side, Nestlé Nigeria and BUA Foods led the losers after each shedding 10 per cent, while MeCure Industries, International Energy Insurance, and UACN also recorded significant declines.
Trading activity surged significantly during the session, with investors exchanging 1.253 billion shares worth N118.179 billion across 47,458 deals, representing a 34.34 per cent increase in volume compared to the previous trading day. First Holdco dominated market activity with 736.038 million shares valued at N80.812 billion, followed by Access Holdings, Guaranty Trust Holding Company, Mutual Benefits Assurance, and Zenith Bank. Although profit-taking temporarily interrupted the market’s upward momentum, analysts believe the strong trading volumes and sustained demand for banking stocks indicate that investor confidence in the Nigerian equities market remains largely intact.
source: punch
