Nigerian Exchange (NGX) has extended its bearish run on Wednesday as sustained profit-taking across major banking, industrial, consumer goods, insurance and telecommunications stocks erased N2.28 trillion from investors’ wealth.
The market downturn reflected continued portfolio rebalancing by investors following the introduction of the T+1 settlement cycle, which has enhanced market efficiency and enabled faster realization of gains from stocks that recorded strong rallies earlier in the year.
At the close of trading, the NGX All-Share Index (ASI) declined by 1.44 per cent to 243,132.61 points from 246,686.66 points recorded in the previous session.
Market capitalization also fell sharply by N2.28 trillion, while the year-to-date return moderated to 56.24 per cent.
Market sentiment remained overwhelmingly negative, with losers outnumbering gainers by 43 to 15, underscoring widespread selling pressure across key sectors.
Banking stocks came under significant pressure as investors locked in profits in tier-one and tier-two lenders. United Bank for Africa, Guaranty Trust Holding Company , Fidelity Bank and Zenith Bank all closed lower.
The industrial goods sector also suffered heavy losses, with Lafarge Africa Plc emerging as the worst-performing stock of the day.
Consumer goods and telecommunications counters added to the market’s woes, with Nigerian Breweries and MTN Nigeria among the major contributors to the decline.
Lafarge Africa led the losers’ chart after shedding 9.97 per cent to close at N122.00 per share. It was followed by NEM Insurance, which dropped 8.81 per cent to N18.10, NGX Group which fell 7.71 per cent to N44.90, and MTN Nigeria which lost 6.95 per cent to close at N445.00. First HoldCo also declined by 6.80 per cent to N40.45.
Other notable downturns included TIP (-6.74%), Nigerian Breweries (-4.13%), Computer Warehouse Group (-3.70%), UBA (-3.15%) and Transcorp (-2.50%).
Despite the broad-based selloff, selective buying interest persisted in a number of counters. The newly upgraded Abbey Mortgage Bank topped the gainers’ table with a 10 per cent appreciation to N13.20 per share, while International Energy Insurance rose by 9.89 per cent to N6.00, surpassing its 52-week high of N5.46.
May & Baker gained 9.88 per cent to close at N17.80, while E-Tranzact advanced 9.80 per cent to N11.20 and Learn Africa appreciated by 9.79 per cent to N5.72.
Trading activity, however, strengthened significantly as investors repositioned their portfolios. Total volume traded rose by 28.42 per cent to 922.97 million shares valued at N42.27 billion in 69,332 deals.
Sterling Financial Holdings Company led the volume chart with 264.59 million shares, accounting for 28.67 per cent of total market turnover by volume. MTN Nigeria dominated the value chart with transactions worth N17.61 billion, representing 41.67 per cent of the market’s total traded value.
Market analysts noted that while the recent weakness reflects profit-taking after months of strong gains, the broader market structure remains positive. They said the correction could present opportunities for long-term investors to accumulate fundamentally strong stocks at more attractive valuations.
