Nigeria’s stock market extended its losing streak on Wednesday as sustained profit-taking across major banking, industrial and insurance stocks wiped about N878 billion off investors’ wealth, even as trading activity recorded one of its strongest performances in recent sessions.
The Nigerian Exchange (NGX) All-Share Index (ASI) shed 1,368.10 points, or 0.61 per cent, to close at 224,321.97 points, down from 225,690.07 points recorded in the previous session. Consequently, the market capitalisation declined by approximately N877.91 billion to N143.95 trillion from N144.82 trillion.
The latest decline further moderated the market’s year-to-date return to about 44.2 per cent, while the month-to-date performance weakened to -2.2 per cent, underscoring persistent selling pressure as investors continued to lock in profits after months of strong market gains.
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The negative close is as a result of widespread selloffs in heavyweight stocks, particularly Lafarge Africa (WAPCO), First HoldCo, Zenith Bank, International Energy Insurance (INTENEGINS), McNichols Plc, and The Initiates Plc (TIP).
Market breadth also reflected weak sentiment, with only 13 stocks posting gains against 34 decliners, indicating that losers continued to significantly outnumber gainers.
International Energy Insurance Plc emerged among the day’s biggest losers after declining 9.84 per cent, alongside McNichols Plc, which lost 9.80 per cent, and TIP, down 9.79 per cent. Guinea Insurance Plc topped the losers’ chart with a maximum 10 per cent decline.
However, the market still recorded pockets of buying interest, with Austin Laz & Company Plc and Learn Africa Plc both appreciating by 10 per cent, while DAAR Communications Plc gained 9.49 per cent.
Sectoral performance remained broadly negative as selling pressure spread across the market. The Insurance Index led sectoral losses after declining 2.5 per cent, followed by the Banking Index, which fell 2.2 per cent. The Industrial Goods Index dropped 1.0 per cent, while the Oil and Gas and Consumer Goods indices slipped 0.2 per cent and 0.1 per cent, respectively.
Despite the bearish sentiment, investor participation strengthened significantly during the session.
Total traded volume surged by between 75 and 95 per cent to 855.40 million shares, while the value of transactions more than doubled to N28.42 billion.
The number of executed deals also rose by nearly 10 per cent to 51,609, reflecting renewed market activity despite the decline in prices.
Sterling Financial Holdings Company Plc dominated the volume chart after investors traded 459.59 million shares, while Aradel Holdings Plc accounted for the highest value of transactions at N4.51 billion.
Analysts said the combination of stronger trading volumes and declining prices suggests that investors remain active but are largely using the opportunity to take profits, particularly in previously outperforming counters.
They noted that while increased market participation could support liquidity, investor sentiment is likely to remain cautious in the near term unless fresh positive catalysts emerge to reverse the prevailing bearish momentum.