The Nigerian stock market started the new trading week on a weaker note as widespread profit-taking erased N76.56 billion from investors’ wealth, bringing its recent rally to a halt. The Nigerian Exchange Limited (NGX) saw its All-Share Index fall by 0.05 per cent to close at 247,238.74 points, while market capitalisation declined to N159.51 trillion. Despite the slight pullback, the Nigerian stock market has still posted a strong 58.88 per cent year-to-date return and a 7.8 per cent month-to-date gain.
Heavy selling in major stocks weighed on market performance. BUA Cement, Access Holdings, International Breweries, Oando and Fidson Healthcare all recorded losses as investors took profits after recent gains. Access Holdings dropped 7.5 per cent, International Breweries fell 9.9 per cent, Oando declined 4.3 per cent, BUA Cement lost 2.5 per cent, while Fidson Healthcare shed nine per cent.
Most sectoral indices also closed lower. The Insurance Index recorded the biggest decline at 1.69 per cent, followed by the Consumer Goods Index, which slipped 1.07 per cent. The Commodity, Oil and Gas, and Industrial Goods indices also finished in negative territory. The Banking Index was the only sector to record gains, rising 0.78 per cent on renewed investor demand.
Market breadth remained negative, with 31 to 32 stocks closing lower compared with 26 to 27 gainers, reflecting cautious sentiment among investors.
Among the top losers were Transcorp Power, International Breweries, Fidson Healthcare, Neimeth International Pharmaceuticals and Austin Laz & Company. On the gainers’ table, Thomas Wyatt Nigeria and Lasaco Assurance each advanced 9.9 per cent, while Consolidated Hallmark Insurance, Chams Holding Company and Capital Market Finance Company also posted notable gains.
Trading activity showed mixed performance as the volume of shares traded fell by 15.1 per cent to 480.02 million shares, worth N51.12 billion across 63,980 deals. Access Holdings led trading by volume with about 47.6 million shares, while Aradel Holdings topped the value chart with transactions worth approximately N27.57 billion.
Market analysts said the decline reflected profit-taking rather than weakening market fundamentals. They noted that although the Nigerian stock market could rebound after the modest correction, continued selling in recently appreciated stocks may slow its recovery in the near term.
Do you expect the Nigerian stock market to resume its rally in the coming sessions?
