NGX investors lose N560bn as Aradel, big stocks extend sell-off

Nigerian equities investors lost about N560 billion on Wednesday as renewed selling pressure in heavyweight stocks pushed the NGX All-Share Index down 0.36 per cent to 240,750.47 points, reducing total market capitalisation to N155.42 trillion.

The latest decline moderated the market’s year-to-date return to 54.71 per cent, from 55.26 per cent in the previous session, as investors continued to lock in gains after the strong rally recorded earlier in the year.

Aradel Holdings led the major sell-offs, plunging 9.99 per cent, while Cornerstone Insurance fell 3.85 per cent and GTCO eased 0.08 per cent. The losses outweighed gains in UACN, which rose 6.56 per cent, AVACAP, up 6.29 per cent, and HMCALL, which gained 10 per cent.

The breadth of the decline also showed that selling pressure remained broad, with 34 stocks falling against 29 gainers.

International Energy Insurance suffered the largest decline at 10 per cent, while HMCALL led the gainers with a 10 per cent increase.

Trading activity, however, strengthened sharply, suggesting that investors were actively repositioning portfolios as the correction gathered momentum.

Total volume traded jumped 177.65 per cent to 1.19 billion shares, while market turnover increased 37.62 per cent to N37.82 billion.

FCMB led trading volume with 60.85 million shares, while MTN Nigeria accounted for the highest transaction value at N8.12 billion.

The combination of higher turnover and a falling benchmark indicates that investors are still actively trading even as selling pressure dominates the market, with funds rotating between counters rather than exiting the equities market entirely.

The latest decline extends the NGX’s broader correction from its recent highs and leaves investors weighing whether valuations can stabilise after months of strong gains.

The weakness was not limited to listed equities. The NASD over-the-counter market also declined, with its Securities Index falling 0.36 per cent to 4,333.09 points and market capitalisation dropping to N2.60 trillion.

Its year-to-date return moderated to 22.27 per cent.

Trading activity on the NASD, however, surged, with volume rising 557.21 per cent to 747,429 units and transaction value jumping 934.04 per cent to N96.76 million across 42 trades.

The market weakness came as the naira also reversed some of its recent gains, depreciating 0.53 per cent to N1,350.41/$ at the Nigerian Foreign Exchange Market.

For investors, the latest session reinforces the importance of selectivity as profit-taking spreads across major counters. While stronger turnover shows that liquidity remains available, the continued erosion of market capitalisation suggests that investors are demanding more attractive entry prices before returning aggressively to heavyweight stocks.

The immediate test for the NGX is whether buying interest in selected gainers can broaden enough to halt the market’s decline or whether continued profit-taking in large-cap stocks will push valuations lower