The Nigerian Exchange (NGX) experienced a continued bearish trend on Wednesday as investors lost approximately N663 billion in market value, underscoring heightened volatility in the equities market. Analysts attributed the decline to profit-taking following the market rally witnessed in the preceding months, as well as broader economic uncertainties.
At the close of trading, the NGX market capitalisation fell to N89.6 trillion from N90.3 trillion recorded in the previous session, while the All-Share Index (ASI) declined by 1,047.19 points, representing a 0.73 per cent drop, to settle at 141,566.28 points.
Over the past week, the market recorded a cumulative loss of 2.95 per cent, though it maintained a four-week gain of 6.8 per cent and a year-to-date growth of 37.54 per cent.
Trading activity also slowed significantly, with 721,787,362 shares valued at N12.93 billion exchanged across 28,728 deals.
This represented a 30 per cent drop in trading volume, a 27 per cent decline in value, and a 16 per cent decrease in the number of deals compared to Tuesday’s session.
Of the 129 equities traded, 18 posted gains while 51 closed in the red.
Austin Laz & Company led the gainers with a 10 per cent appreciation to N2.64 per share, followed by Champion Breweries, which rose 9.97 per cent to N19.74. NCR Nigeria and Multiverse Mining & Exploration also advanced 9.77 per cent and 8.82 per cent, respectively.
Conversely, Conoil emerged as the worst performer, shedding 9.98 per cent to close at N211.10 per share, alongside Guinness Nigeria, which also dropped 9.98 per cent to N140.20.
Consolidated Hallmark Holdings and Royal Exchange followed with declines of 9.94 per cent and 9.92 per cent, respectively.
In terms of trading volume, Champion Breweries led with 54.5 million shares, followed by Universal Insurance Company (47.8 million shares), Royal Exchange (46.2 million), and Regency Alliance Insurance (40.8 million).
On the value front, Zenith Bank recorded the highest transaction worth N1.26 billion, closely trailed by MTN Nigeria (N1.25 billion), Champion Breweries (N988.3 million), Guaranty Trust Holding Company (N941.9 million), and Stanbic IBTC Holdings (N773 million).
Sectoral performance mirrored the overall market weakness.
The Top 30 Index dipped 0.66 per cent, while the NGX Industrial Index fell slightly by 0.01 per cent.
The Pension Index and NGX Main Board Index lost 0.83 per cent and 1.16 per cent, respectively. However, the Premium Index and NGX Oil & Gas Index saw marginal gains of 0.12 per cent and 0.11 per cent.
Market experts pointed to profit-taking as a key driver of the downturn.
Financial analyst Olaid Baanu noted, “The sustained rally between May and July created significant gains, particularly in high-capitalised stocks.
The current decline is a normal correction, allowing investors to lock in profits and reposition for future opportunities.”
Baanu added that market corrections often provide investors with new entry points and improve long-term market health.
“While some losses are expected in profit-taking periods, the underlying growth trend remains intact, and strategic investors can benefit from selective stock acquisitions,” he said.
The bearish trend comes after Tuesday’s session, when the market lost N1.33 trillion in capitalisation due to sell-offs in Dangote Cement and banking stocks.
Analysts emphasized that, despite these short-term declines, Nigeria’s equities market continues to exhibit strong year-to-date performance, reflecting resilient investor confidence in the economy.
As market participants navigate volatility, analysts recommend careful portfolio management, focusing on fundamentally strong stocks and diversifying across sectors to mitigate risk.