Nigeria’s equities market began the new trading week on a restrained footing on Monday, as investors adopted a cautious stance amid profit-taking in select heavyweight stocks.
Market capitalisation declined by ₦11 billion, reflecting mild losses recorded across key sectors of the Nigerian Exchange Limited (NGX).
At the close of trading, the NGX All-Share Index (ASI) slipped by 17.00 points, representing a marginal decline of 0.01 per cent, to settle at 166,112.50 points.
Consequently, the total market value of listed equities dropped to ₦106.343 trillion from the previous session’s close.
Market analysts attributed the modest downturn to sell pressure in large- and mid-cap stocks, particularly in the industrial goods, banking, hospitality, and consumer sectors.
Despite the overall dip, sentiment indicators suggested that investor confidence remains largely intact, supported by strong buying interest in selected stocks.
Nigerian equities market dips by N11bn amid sell pressure in key stocks
The slight contraction in the Nigerian equities market was driven by price depreciation in a number of capitalised stocks, including Industrial & Medical Gases Nigeria, Nigerian Breweries, Ikeja Hotel, Guaranty Trust Holding Company (GTCO), and First HoldCo.
These stocks recorded losses as investors locked in profits following recent rallies.
Industrial & Medical Gases Nigeria led the losers’ chart, shedding 9.95 per cent to close at ₦34.85 per share.
Haldane McCall followed closely with a decline of 9.88 per cent, ending the session at ₦3.83 per share.
LivingTrust Mortgage Bank also experienced significant selling pressure, dropping by 9.57 per cent to close at ₦4.44 per share.
Further declines were recorded in Ikeja Hotel, which depreciated by 7.28 per cent to ₦32.50 per share, and Union Dicon Salt, which lost 5.26 per cent to close at ₦9.00 per share.
These losses collectively weighed on market performance, contributing to the ₦11 billion erosion in capitalisation.
However, despite the losses in some bellwether stocks, market breadth remained positive.
A total of 44 equities closed in the green, while 24 stocks recorded losses, underscoring sustained bargain-hunting activities among investors.
Champion Breweries, Learn Africa, and NCR Nigeria emerged as the top gainers of the day, each appreciating by 10 per cent to close at ₦19.25, ₦7.15, and ₦141.40 per share, respectively.
Tripple Gee & Company followed with a gain of 9.94 per cent to close at ₦5.86, while Neimeth International Pharmaceuticals advanced by 9.90 per cent to settle at ₦11.10 per share.
The performance of these stocks reflected renewed investor interest in companies with perceived growth potential, strong fundamentals, or attractive valuations.
Trading activity improves as investors reposition portfolios
In terms of market activity, trading volumes and values recorded notable improvements, indicating increased participation by investors.
Total volume traded rose by 16.62 per cent to 629.600 million units, compared to the previous trading session.
The total value of transactions stood at ₦14.754 billion, executed across 57,858 deals.
Secure Electronic Technology dominated trading activities by volume, with 83.307 million shares exchanged, valued at ₦98.202 million.
Access Holdings followed with 52.879 million shares traded, amounting to ₦1.214 billion, while Jaiz Bank recorded 39.730 million shares valued at ₦339.106 million.
Other actively traded stocks included Tantalizer, which saw 34.242 million shares worth ₦103.110 million change hands, and Fidelity Bank, with 23.693 million shares valued at ₦473.450 million.
Market watchers noted that the increased activity reflects portfolio rebalancing by institutional and retail investors, as they position themselves ahead of upcoming corporate earnings releases and macroeconomic data.
Analysts remain cautiously optimistic on market outlook
Despite the subdued start to the week, analysts remain cautiously optimistic about the near-term outlook of the Nigerian equities market.
According to Imperial Asset Managers Limited, the market is expected to trade on a mixed-to-bullish trajectory in the coming sessions.
“We expect the market to trade on a mixed-to-bullish note, with selective accumulation in financially sound and income-oriented stocks likely to support continued gains,” the firm stated in a market note.
Analysts added that improving macroeconomic indicators, including upward revisions to Nigeria’s economic growth outlook by multilateral institutions such as the World Bank and the International Monetary Fund, could provide additional support for equities in the medium term.
Furthermore, recent policy reforms, stronger corporate earnings expectations, and growing investor appetite for dividend-paying stocks are expected to underpin market resilience, even as intermittent profit-taking persists.
Investors advised to focus on fundamentals
Market experts have advised investors to remain selective and focus on companies with solid balance sheets, consistent earnings growth, and strong dividend histories.
While short-term volatility may continue due to global economic uncertainties and domestic policy adjustments, fundamentally sound stocks are expected to deliver value over time.
As the Nigerian equities market dips by ₦11bn, the overall outlook suggests that the decline remains mild and largely technical, rather than indicative of a broader market reversal.
With positive market breadth and improving liquidity, investor confidence appears resilient, setting the stage for potential recovery in subsequent sessions.
