NGX Retreats as Profit-Taking Ends 23-Session Rally, Investors Lose N457bn

|By Babatunji Wusu

The Nigerian stock market reversed course on Thursday, snapping a 23-session winning streak as sustained profit-taking wiped N457 billion off investors’ portfolios.

Trading at the Nigerian Exchange Limited (NGX) closed lower after sell pressure in several counters erased gains recorded in the previous session. Market capitalization declined by N457 billion, or 0.43 percent, to N106.323 trillion from N106.780 trillion on Wednesday.

Similarly, the NGX All-Share Index shed 714.66 points, or 0.43 percent, to settle at 166,057.29, down from 166,771.95. Market breadth turned negative, with 41 stocks closing lower against 36 gainers.

Losses were driven by declines in Mc Nicholas, Caverton Offshore Support Group, Ikeja Hotel, FTN Cocoa Processors, and Neimeth International Pharmaceutical, among others.

On the gainers’ table, Nestlé Nigeria led advances, followed by NCR Nigeria, Jaiz Bank, and Morison Industries.

Despite the pullback, trading activity remained strong. Investors exchanged 1.03 billion shares valued at N31.6 billion across 51,227 deals, compared with 761.9 million shares worth N29.9 billion traded in 55,751 transactions in the prior session. The data reflect a 36 percent jump in volume, a six percent increase in value, and an eight percent decline in the number of deals.

Zenith Bank topped the value chart, with trades worth N5.03 billion, accounting for 15.92 percent of total value traded. Access Corporation and Zenith Bank also led by volume, contributing 7.58 percent and 7.00 percent, respectively.

The decline followed Wednesday’s rally, when the market extended its bullish run and added N598 billion to investors’ holdings.