NGX sheds N1.3trn as profit-taking hits market after 60% rally

Nigerian equities suffered a broad-based sell-off on Thursday as investors took profits in major stocks following the market’s strong 2026 rally, wiping about N1.34 trillion from market capitalisation and pushing the All-Share Index down 0.82 per cent.

The NGX All-Share Index closed at 248,042.50 points, while market capitalisation fell to N161.05 trillion from N162.39 trillion in the previous session. The decline moderated the market’s year-to-date return to 59.40 per cent from 60.72 per cent.

The size of the correction remains relatively modest compared with the market’s gains this year, but the breadth of the sell-off shows that investors were willing to lock in profits across several actively traded counters.

Aradel Holdings led the losses, falling 10 per cent, while Fidelity Bank and MTN Nigeria declined 4.96 per cent and 3.54 per cent respectively. The declines in some of the market’s major stocks outweighed gains in Oando, FirstHoldCo and GTCO.

Trading activity, however, strengthened rather than weakened. Total volume rose 10.12 per cent to 492.23 million shares, while transaction value jumped 65.64 per cent to N38.02 billion.

Access Holdings led the volume chart with 42.94 million shares traded, while Presco recorded the highest value turnover at N7.46 billion.

The stronger turnover alongside a falling index suggests that the session was driven more by portfolio repositioning and profit-taking than a wholesale withdrawal of investors from Nigerian equities.

Market breadth was firmly negative, with 40 stocks declining against 32 gainers, producing a breadth ratio of 0.80 times. E-Tranzact led the gainers with a 10 per cent advance, while Aradel topped the losers.

The correction comes after the NGX had gained more than 60 per cent at its recent peak, raising the incentive for investors to crystallise some of their gains and reassess valuations.

For institutional and retail investors, the current phase of the market is likely to place greater emphasis on earnings, dividends and fundamentals as the easy gains from broad market momentum become harder to sustain.

The movement also highlights the increasingly uneven performance across the exchange. Some stocks continue to attract strong buying interest, while others are facing intense profit-taking even when the broader market remains substantially above its opening level for the year.

The sell-off was mirrored on the NASD Over-the-Counter market, where the NASD Securities Index fell 0.16 per cent to 4,388.41 points. Market capitalisation declined to N2.63 trillion, while the year-to-date return moderated to 23.84 per cent.

Trading on the NASD weakened sharply, with volume falling 72.05 per cent to 315,883 units and transaction value dropping 87.03 per cent to N20.14 million, although the number of trades increased to 35.

The NGX correction therefore appears to be part of the market’s normal adjustment after an exceptional run rather than a fundamental reversal. With the index still up 59.40 per cent this year, investors are now testing whether corporate earnings can justify the elevated valuations created by the rally.