The Nigerian stock market experienced a sharp downturn on Thursday, erasing ₦303 billion in investor wealth amid a wave of profit-taking and valuation corrections on the Nigerian Exchange (NGX).
After a robust rally driven by both fundamentally strong and overvalued equities, the NGX All-Share Index broke its six-day winning streak, falling by 40 basis points to close at 120,772.68 index points. Consequently, the market capitalization slid to ₦76.46 trillion, down from ₦76.76 trillion.
Market data revealed that sell-offs in key counters like BUA Foods (-6.46%), Oando (-9.96%), and First Bank Holdings (-3.28%) contributed significantly to Thursday’s bearish session. Their losses outweighed gains recorded in stocks such as BUA Cement (+5.90%) and Transcorp Hotels (+9.62%).
Overall, the All-Share Index dropped by 446.18 points during the session, with year-to-date gains witnessing a modest decline. Analysts said the downturn underscores investor strategy to secure profits following a prolonged uptrend.
“Strategic offloading of overbought equities is a natural phase after such bullish runs,” stockbrokers commented, adding that the correction also signals a more cautious investor outlook.
Trading activity was mixed. While trade volume increased by 1.94%, the value of trades dipped by 31.31%, pointing to cautious repositioning by market participants.
According to a market update from Atlass Portfolio Limited, approximately 878.37 million units worth ₦17.98 billion were exchanged in 25,121 deals. ELLAH Lakes led the volume chart, accounting for 12.76% of total trade volume. Other top contributors included AccessCorp (8.57%), Caverton (7.29%), Japaul Gold (6.92%), and Zenith Bank (6.78%).
In terms of trade value, Zenith Bank dominated with 19.10% of the total value transacted on the floor.
On the gainers’ table, Unilever advanced by 10%, followed closely by Neimeth (+9.98%), UACN (+9.97%), CAP (+9.92%), Prestige Assurance (+9.80%), and Transcorp Hotels (+9.62%). A total of 31 equities posted gains.
However, the day closed with 37 laggards, led by Thomas Wyatt, which lost 10%. Other major losers included NAHCO (-9.99%), Oando (-9.96%), Livestock Feeds (-8.16%), and BUA Foods (-6.46%).
Sectoral performance was uneven. The consumer goods (-1.44%), oil & gas (-1.25%), and banking (-0.57%) indices all declined, driven by bearish sentiment in BUA Foods, Oando, and First Bank Holdings, respectively. Conversely, the industrial goods index gained 2.11% and the insurance index rose 1.08%, buoyed by buying interest in BUA Cement and NEM Insurance. The commodity index remained flat.
