NGX investors lose N2.39tn as profit-taking triggers stock market sell-off

Investors on the Nigerian Exchange Limited (NGX) suffered another major setback on Tuesday as renewed profit-taking in blue-chip stocks wiped N2.39 trillion off the equities market, extending the bearish trend that has emerged after months of sustained gains.

The broad market closed lower by 1.63 per cent, with the NGX All-Share Index (ASI) shedding 3,729.11 points to settle at 225,690.07, down from 229,419.18 in the previous trading session.

Consequently, the market capitalisation of listed equities declined from N147.22 trillion to N144.82 trillion, while the market’s month-to-date return slipped to -1.63 per cent. Despite the decline, the bourse has still returned 45.03 per cent to investors this year.

The sharp decline was driven by heavy sell-offs in some of the market’s largest capitalised stocks, including Aradel Holdings Plc, which plunged 10.0 per cent; Dangote Cement Plc, which fell 7.5 per cent; Zenith Bank Plc, which lost 4.5 per cent; and Transnational Corporation Plc (Transcorp), which declined 7.0 per cent.

Other major losers included Neimeth International Pharmaceuticals Plc, McNichols Plc, NASCON Allied Industries Plc, and International Breweries Plc, all of which contributed to the negative market sentiment.

On the gainers’ table, Austin Laz & Company Plc appreciated by the maximum 10.0 per cent, while Guinea Insurance Plc rose 9.9 per cent. Other notable gainers were Abbey Mortgage Bank Plc, DAAR Communications Plc, and Regency Alliance Insurance Plc.

Market breadth remained firmly negative, with losers significantly outnumbering gainers. While between 18 and 19 stocks recorded gains, 30 to 32 equities closed lower, leaving market breadth at approximately 0.6x.

Investor appetite also weakened considerably as trading activity slowed across all major indicators.

Market data showed that total trading volume declined by nearly half to 488.12 million shares, compared with 966.66 million shares traded in the previous session. The value of transactions also plunged by more than 65 per cent to N13.96 billion, while the number of executed deals dropped by 5.35 per cent to 46,929 transactions.

Sterling Financial Holdings Company Plc emerged as the most actively traded stock by volume, accounting for over 124.6 million shares, while Zenith Bank Plc dominated the value chart with transactions worth about N2.14 billion.

Sectoral performance reflected the broad weakness in the market. The Oil and Gas Index recorded the steepest decline, dropping 4.41 per cent, followed by the Industrial Goods Index, which lost 3.65 per cent. The Commodity Index fell 2.91 per cent, while the Banking and Consumer Goods indices declined 1.49 per cent and 0.93 per cent, respectively.

The Insurance Index was the lone bright spot, advancing 0.42 per cent as investors accumulated selected insurance stocks.

Looking ahead, analysts expect the market to remain under pressure in the near term as profit-taking persists. However, they believe bargain hunting and strategic portfolio repositioning by institutional investors could provide support and moderate losses in subsequent trading sessions, especially as investors begin positioning ahead of the second-quarter earnings season.