Equities shed N800bn as profit-taking halts market rally

The recent bullish momentum on the Nigerian Exchange Limited came to a sudden halt on Wednesday as aggressive profit-taking in high-capitalisation stocks wiped N800bn off the total market valuation.

The All-Share Index fell by 1,241.19 points, representing a 0.50 per cent decline, to close at 245,418.37 basis points. Consequently, market capitalisation dropped to N158.319tn.

The market’s downturn was primarily triggered by price depreciation in key consumer goods and industrial heavyweights, notably Nestle Nigeria, BUA Foods, UACN, Guinness Nigeria, and MeCure Industries.

Despite the broader market contraction, investor sentiment remained resilient, reflected in a positive market breadth as 37 gainers outpaced 27 decliners.

Commenting on the day’s trend, market analysts noted that the heavy concentration of trading activity, where over two-thirds of total market value was locked in First Holdco, underscored strong institutional participation on the trading floor.

Furthermore, sustained buying interest in tier-one banking stocks indicated an ongoing appetite for financial sector equities despite general profit-taking across other sectors.

On the performance chart, Cadbury Nigeria, Trans-Nationwide Express, and Unilever Nigeria led the gainers, each advancing by the maximum daily limit of 10 per cent to close at N62.70, N3.08, and N137.50 per share, respectively.

They were closely followed by Thomas Wyatt Nigeria, which rose 9.95 per cent to N4.09, and NASCON Allied Industries, which climbed  8.89 per cent to close at N196 per share.

Conversely, Nestle Nigeria and BUA Foods topped the decliners’ table, shedding 10 per cent each to settle at N2,812.50 and N845.10 per share.

MeCure Industries dropped 9.94 per cent to N69.30, International Energy Insurance dipped 9.84 per cent to N4.40, while UACN slipped 7.75 per cent to N184.45 per share.

Activity levels spiked significantly as total volume traded jumped 34.34 per cent to 1.253 billion units, valued at N118.179bn, executed in 47,458 deals.

First Holdco dominated the activity chart by a massive margin, recording 736.038 million shares exchanged for N80.812bn. Access Holdings followed with 79.580 million shares worth N2.094bn, while Guaranty Trust Holding Company traded 34.044 million shares valued at N4.419bn.

Mutual Benefits Assurance and Zenith Bank rounded off the top five most active counters, trading 24.361 million shares (N85.326m) and 21.455 million shares (N2.575bn), respectively.