Equities market loses N100bn as investors extend profit-taking

Nigerian equities investors lost about N100 billion in market value on Monday as continued profit-taking in major banking stocks pushed the NGX All-Share Index down 0.07 per cent to 242,454.65 points, marking a weak start to the new trading week.

Market capitalisation fell to N156.52 trillion from N156.62 trillion at the previous close, while the market’s year-to-date return moderated slightly to 55.81 per cent from 55.91 per cent.

The decline was driven mainly by losses in Zenith Bank, AccessCorp and UBA, which fell 0.33 per cent, 0.92 per cent and 0.77 per cent respectively.

The losses outweighed buying interest in Fidelity Bank, Dangote Sugar and Oando, which gained 2.33 per cent, 8.60 per cent and 0.28 per cent respectively.

Market activity also weakened significantly, reflecting cautious investor participation as the market continues to digest its recent correction.

Total traded volume fell 5.89 per cent to 1.33 billion units, while transaction value plunged 49.40 per cent to N22.93 billion.

Lasaco led trading volume with 730.69 million units, while MTN Nigeria recorded the highest transaction value at N7.30 billion.

Market breadth deteriorated, closing at 0.50x, with 36 stocks declining against only 18 gainers, underscoring the broader selling pressure.

RT Briscoe recorded the largest decline, falling 9.91 per cent, while Trans-Nationwide Express led the gainers with a 9.86 per cent increase.

The weakness extended to the NASD over-the-counter market, where the NASD Securities Index fell 0.89 per cent to 4,426.02 points, while market capitalisation declined to N2.66 trillion. Its year-to-date return moderated to 24.90 per cent.

Trading on the OTC market also weakened sharply, with volume down 79.34 per cent to 652,081 units and transaction value plunging 97.16 per cent to N10.68 million across 21 trades.

SDIGIPLC was the sole gainer, rising 1.82 per cent, while SDFCWAMCO fell 6.16 per cent.

The subdued equities performance came as the naira strengthened in the foreign exchange market. The Nigerian Foreign Exchange Market (NAFEM) appreciated 0.60 per cent to N1,349.54/$, offering some support to investors amid improved currency stability.

In the global commodities market, crude oil prices were little changed as stalled US-Iran peace talks and slower shipping through the Strait of Hormuz kept supply concerns elevated.

Despite the geopolitical risks, analysts expect further oil-price gains to remain limited unless there is a major disruption to crude flows through the Strait of Hormuz or Bab el-Mandeb.

The latest NGX session suggests that investors remain cautious following the market’s sharp gains earlier in the year, with falling turnover and weak breadth indicating that buying interest has yet to regain momentum.

The immediate test for the market will be whether renewed demand emerges in large-cap stocks or whether continued profit-taking pushes the correction further.