KEY POINTS
- Market capitalisation fell by N469 billion to N163.53 trillion after a bullish session the previous day.
- The All-Share Index declined by 0.29 per cent, while 32 stocks closed lower against 27 gainers.
- Trading volume dropped 46.46 per cent to 548.67 million shares, with GTCO accounting for the largest share of activity.
MAIN STORY
The Nigerian equities market surrendered the gains recorded in the previous session on Tuesday as profit-taking pushed major market indicators into negative territory.
Market capitalisation fell to N163.530 trillion from a record N163.999 trillion, translating to a loss of N469 billion or 0.29 per cent.
The All-Share Index followed the same direction, dropping 721.91 points to close at 251,913.20, compared with 252,635.11 recorded in the previous session.
The decline also trimmed the market’s year-to-date return to 61.88 per cent, while market breadth reflected broader selling pressure, with 32 stocks declining against 27 gainers.
Sovereign Trust Insurance recorded the steepest loss, falling 9.92 per cent to N2.36 per share. Unilever Nigeria declined 8.55 per cent to N100.50, while Neimeth International Pharmaceuticals lost 6.02 per cent to close at N7.80.
University Press dropped six per cent to N4.70, while International Breweries shed 5.45 per cent to N9.55.
The session’s gainers were led jointly by NPF Microfinance Bank and Livingtrust Mortgage Bank, which each advanced 10 per cent to close at N4.40 and N2.86 respectively.
WAPIC gained 9.95 per cent to N2.43, while VFD Group rose 9.84 per cent to N13.40. ABC Transport appreciated by 9.82 per cent to close at N6.15.
Trading activity also weakened, with total volume falling 46.46 per cent to 548.67 million shares. The transactions were valued at N34.30 billion and executed in 47,301 deals.
GTCO dominated activity for the session, with 88.73 million shares valued at N11.73 billion changing hands. Its trades represented 16.17 per cent of total volume and 34.20 per cent of total value.
THE ISSUES
- The market’s reversal came after it reached a record market capitalisation in the previous session, with selling pressure in several stocks outweighing gains recorded by others.
- The negative breadth indicates that more stocks lost value than gained, led by declines in Sovereign Trust Insurance, Unilever Nigeria and Neimeth International Pharmaceuticals.
- Trading participation also moderated sharply, with both volume and value concentrated in a relatively small number of heavily traded stocks, particularly GTCO.
WHAT’S BEING SAID
The market data attributed the session’s decline to profit-taking across several stocks, including Sovereign Trust Insurance, Unilever Nigeria, Neimeth International Pharmaceuticals, University Press and International Breweries. — Nigerian equities market report
GTCO accounted for 88.73 million shares valued at N11.73 billion, making it the most actively traded stock by both volume and value during the session. — Nigerian equities market report
WHAT’S NEXT
Investors will continue to monitor whether the selling pressure extends into subsequent sessions, particularly among stocks that recorded significant gains before Tuesday’s decline.
Trading activity and market breadth will also provide indications of whether the reversal was a temporary profit-taking move or part of a broader shift in investor positioning.
BOTTOM LINE
The equities market lost N469 billion on Tuesday as profit-taking reversed the previous session’s gains, while reduced trading activity and negative market breadth pointed to weaker sentiment across the session.
