Key points
- Nigerian equities lost N32 billion in market value on Thursday.
- Profit-taking in insurance and technology stocks weighed on market performance.
- The All-Share Index fell 0.09 per cent, although market breadth remained positive.
- Trading activity strengthened, with higher volume and value of transactions.
Main story
The Nigerian Exchange (NGX) closed lower on Thursday as investors booked profits in selected insurance and technology stocks, ending a two-session winning streak.
Market capitalisation declined by N32 billion, or 0.02 per cent, to close at N156.207 trillion, down from N156.239 trillion recorded on Wednesday.
The All-Share Index also slipped by 221.14 points, representing a 0.09 per cent decline, to settle at 242,145.61 from the previous close of 242,366.75.
Despite the pullback, the market maintained a positive year-to-date return of 55.61 per cent, while investor sentiment remained relatively resilient, with 27 gainers against 22 losers.
First HoldCo topped the gainers’ chart after rising 9.96 per cent to close at N87.25 per share. McNichols followed with an 8.00 per cent gain to N5.40, while United Bank for Africa (UBA) advanced 7.93 per cent.
Veritas Kapital appreciated by 6.85 per cent to N1.56, while Jaiz Bank gained 4.07 per cent to close at N8.95 per share.
On the downside, Eunisell Interlinked recorded the steepest loss, falling 10 per cent to N189.00. BUA Cement shed 9.99 per cent to N275.60, while Chemical and Allied Products declined 9.61 per cent to N142.45.
Royal Exchange lost 9.55 per cent, and Guinea Insurance dropped 5.38 per cent to close at 88 kobo per share.
Trading activity improved during the session as investors exchanged 498.45 million shares valued at N34.87 billion in 39,484 deals, representing a 4.64 per cent increase in volume.
Ja Paul Gold led the volume chart with 77.66 million shares, accounting for 15.58 per cent of total shares traded.
Seplat emerged as the most actively traded stock by value, recording transactions worth N13.19 billion, equivalent to 37.82 per cent of the day’s total turnover.
The issues
The market decline reflected renewed profit-taking after recent gains, with investors locking in returns in selected stocks. Even so, positive market breadth and stronger trading activity suggest buying interest remains in parts of the market.
What’s being said
Market activity indicated that investors selectively realised profits after the recent rally, while continued buying in several stocks helped keep overall market breadth positive.
What’s next
Market direction in the coming sessions is expected to depend on investor appetite for fundamentally strong stocks, corporate earnings releases and broader market sentiment.
Bottom line
Profit-taking halted the NGX’s recent upward momentum, but positive market breadth and increased trading activity point to continued investor interest despite the modest decline.
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