Equity investors lose N37bn as profit-taking extends NGX decline

Equity investors lost about N37 billion on Thursday as persistent profit-taking extended the Nigerian Exchange (NGX) downturn, with the market capitalisation declining from N156.25 trillion to N156.21 trillion, despite renewed buying interest in banking stocks.

The NGX All-Share Index (ASI) fell by 0.09 per cent to close at 242,145.61 points from the previous session’s level, trimming the market’s year-to-date return to 55.61 per cent from 55.75 per cent.

The market decline was largely driven by heavy losses in large and medium-capitalised stocks, including BUA Cement, Royal Exchange and CAP Plc, which outweighed gains recorded in First HoldCo, United Bank for Africa (UBA) and Oando.

BUA Cement led the laggards with a 9.99 per cent decline, followed by Eunisell Interlinked (-10.00 per cent), CAP Plc (-9.61 per cent), Royal Exchange (-9.55 per cent), ABC Transport (-9.24 per cent), C&I Leasing (-8.47 per cent), Guinea Insurance (-7.69 per cent), Mutual Benefits Assurance (-6.94 per cent), Lasaco Assurance (-5.56 per cent) and Custodian Investment (-4.81 per cent).

On the gainers’ chart, First HoldCo appreciated by 9.96 per cent to emerge as the best-performing stock, followed by UBA (+7.93 per cent), Champion Breweries (+6.35 per cent), UPDC (+5.45 per cent), Consolidated Hallmark Holdings (+5.08 per cent), Veritas Kapital Assurance (+4.92 per cent), International Energy Insurance (+4.88 per cent), Honeywell Flour Mills (+4.85 per cent), May & Baker Nigeria (+4.76 per cent) and Learn Africa (+4.72 per cent).

Market activity remained robust as investors traded 498.45 million shares, representing a 4.64 per cent increase from the previous session, while the value of transactions rose 17.71 per cent to N34.87 billion.

Japaul Gold & Ventures led the volume chart with 77.66 million shares, while Seplat Energy topped the value chart after recording transactions worth N13.19 billion, reflecting continued institutional participation.

Despite the negative close, market breadth improved as 28 stocks advanced against 22 decliners, producing a positive breadth ratio of 1.27 times, indicating that buying interest remained selective even as profit-taking persisted in heavyweight counters.

Analysts said the mixed sentiment reflects investors’ continued portfolio rebalancing, with bargain hunting in fundamentally strong banking and energy stocks offset by sustained profit-taking in cement and consumer goods counters.

They noted that while macroeconomic indicators, including easing inflation and relative exchange rate stability, continue to support investor confidence, market participants are likely to remain cautious ahead of the half-year corporate earnings season, when stronger earnings could determine the market’s next direction.