Nigeria’s equities market reversed earlier gains as investors engaged in widespread profit-taking, leading to a ₦590 billion decline in total market capitalisation.
The downturn follows a strong rally that added approximately ₦5.11 trillion to the market on Monday, driven largely by pension funds and institutional investors targeting growth stocks and undervalued counters across major sector indices. However, the rapid surge prompted traders to secure gains amid expectations of a short-term correction.
The NGX All-Share Index declined by 0.47% to close at 189,321.24 points, trimming the year-to-date return to 21.66%. Correspondingly, total market capitalisation slipped by 0.47%, settling at ₦121.5 trillion.
Heavyweights Drag Market Lower
The decline was primarily influenced by sell-offs in key large-cap stocks. MTN Nigeria dropped 3.81%, while Lafarge Africa (WAPCO) fell 4.04%. Banking heavyweights also came under intense pressure, with Zenith Bank plunging 10.00% and United Bank for Africa shedding 6.56%. These losses overshadowed gains recorded by BUA Foods, which advanced 5.77%, and Presco, which rose 3.03%.
Despite the broad pullback, overall market sentiment remained mildly constructive. Market breadth closed at 1.1x, with 44 equities posting gains compared to 40 decliners, indicating selective buying interest persisted.
Gainers and Decliners
Leading the gainers’ chart were ABC Transport, Zichis, Red Star Express, Meyer Plc, and Japaul Gold. On the downside, Mecure Industries, Zenith Bank, Skyway Aviation, RT Briscoe, and Tripple Gee & Co. recorded the most pronounced declines.
Sectoral Performance Mixed
Performance across sectors leaned negative. The Banking index recorded the steepest drop at 3.69%, followed by Insurance (-0.57%), Industrial Goods (-0.50%), and Oil & Gas (-0.06%). Conversely, the Consumer Goods index rose 2.54%, while the Commodity index posted a modest gain of 0.32%, cushioning broader market losses.
Trading Activity Strengthens
Market participation improved significantly across most activity indicators. The number of executed trades surged by 34.82% to 86,697 transactions. Trading volume climbed 12.93% to 1.19 billion units.
However, the total value of transactions declined by 4.44%, closing at ₦60.19 billion, suggesting that while activity increased, investors allocated capital more selectively. Analysts say the recent pullback reflects a natural correction following strong gains, with investors recalibrating portfolios ahead of potential macroeconomic shifts and earnings expectations.
