The Nigerian Exchange (NGX) continued its downward trend on Thursday, with investors losing another N1.005 trillion in market value as sustained profit-taking extended the market’s losing streak to two consecutive sessions. The latest decline pushed the cumulative loss over the past two trading days to more than N1.65 trillion, highlighting growing caution among investors despite the market’s strong gains earlier this year. The benchmark All-Share Index (ASI) slipped by 0.66% to close at 245,362.26 points, while total market capitalization fell to N158.34 trillion.
Selling pressure was widespread across the market, with 45 stocks declining compared to just 17 gainers, reflecting weak investor sentiment. Major stocks including HBM Nigeria, NGX Group, NASCON Allied Industries, First HoldCo, and Zenith Bank weighed heavily on the benchmark index. Among the day’s biggest losers were Tripple Gee & Company, Lasaco Assurance, C&I Leasing, Mutual Benefits Assurance, and Trans-Nationwide Express, each recording losses close to the daily maximum allowed. On the brighter side, Legend Internet, Daar Communications, Sterling Financial Holdings, Sovereign Trust Insurance, and Royal Exchange posted modest gains, offering limited relief to the broader market.
Despite the market downturn, trading activity surged significantly, suggesting that institutional investors remained active. A total of 2.10 billion shares worth N230.83 billion exchanged hands during the session, representing sharp increases in both trading volume and value. First HoldCo emerged as the undisputed market leader, accounting for an astonishing N196.20 billion in traded value from 1.57 billion shares, making up the bulk of the day’s total transactions. Other actively traded stocks included Access Holdings, Sterling Financial Holdings, Ellah Lakes, and Zenith Bank, although their combined activity was far below that of First HoldCo.
Sector performance painted a largely bearish picture as investors continued to lock in profits. The Insurance Index led the losses with a 2.26% decline, followed closely by the Banking Index, which dropped 2.04%. Consumer Goods and Industrial sectors also finished lower, while the Oil and Gas Index recorded a marginal gain of 0.01%, making it the only sector to end the day in positive territory. Analysts say the sustained weakness reflects investors taking profits after the market’s impressive rally earlier in July, reducing the year-to-date return to 57.67%.
Looking ahead, market analysts believe the cautious mood could persist in the near term. Analysts at Cowry Asset Management Limited expect profit-taking to continue weighing on investor confidence across most sectors, potentially extending the current correction. While the recent sell-off has erased over N1.65 trillion in market value within two days, many investors will be watching closely to see whether bargain hunters step in or whether further declines create new buying opportunities in Nigeria’s equity market.
source: nairametrics
