NGX investors lose N801bn as profit-taking hits equities

Investors on the Nigerian Exchange (NGX) lost ₦800.7 billion on Wednesday as profit-taking in heavyweight consumer goods stocks reversed the market’s recent rally, dragging market capitalisation down to ₦158.32 trillion.

The benchmark NGX All-Share Index (ASI) declined by 0.50 per cent, shedding 1,241.19 points to close at 245,418.37, while the market’s capitalisation fell from ₦159.12 trillion to ₦158.32 trillion.

The decline was driven largely by sell-offs in BUA Foods, Nestlé Nigeria, Mecure Industries and UAC of Nigeria, which offset gains recorded in banking, insurance and industrial stocks.

Despite the market downturn, trading activity strengthened considerably as investors exchanged 1.25 billion shares worth ₦118.18 billion in 47,458 deals, representing a 34.34 per cent increase in volume and a 139.80 per cent surge in transaction value.

First HoldCo dominated market activity, accounting for 58.89 per cent of total traded volume and 68.41 per cent of transaction value, reaffirming its position as the market’s most actively traded stock. It was followed by Access Holdings, GTCO, Mutual Benefits Assurance and Zenith Bank in volume traded.

On the gainers’ chart, Cadbury Nigeria, Legend Internet Plc and another stock appreciated by the maximum 10 per cent, while Thomas Wyatt, NASCON Allied Industries, UPL, PZ Cussons and AXA Mansard also posted strong gains.

Conversely, BUA Foods and Nestlé Nigeria led the losers’ table with 10 per cent declines each, followed by Mecure Industries (-9.94 per cent), International Energy Insurance (-9.84 per cent), UACN (-7.75 per cent), Neimeth International Pharmaceuticals (-5.95 per cent) and FTN Cocoa Processors (-5.94 per cent).

Market breadth remained positive, with 36 gainers against 28 losers, indicating that buying interest persisted across several medium and small-cap stocks despite the overall market decline.

Sectoral performance was mixed. The Insurance Index led gainers with a 1.64 per cent increase, followed by the Banking Index (+1.51 per cent) and the Industrial Goods Index (+0.81 per cent).

However, heavy losses in BUA Foods and Nestlé Nigeria weighed on the Consumer Goods Index, which fell 5.04 per cent, while the Oil and Gas Index closed marginally lower.

Analysts said the decline reflects profit-taking following recent market gains, although sustained institutional demand for banking stocks and improved market liquidity continue to support the broader bullish outlook for Nigerian equities.