Profit-taking Persists as Stock Market Sheds N555.7bn
Kayode Tokede The domestic stock market yesterday dropped by N555.7 billion to sustain its down momentum for the third consecutive trading session this week. Capital market analysts attributed the downward
The Nigerian stock market experienced a significant decline, shedding N555.7 billion, as it continued its downward trend for the third consecutive trading day. Market analysts attribute this decline to the lucrative yields offered by money instruments. The previous day's market capitalization of N155.973 trillion fell by N555.7 billion, or 0.36%, to close at N155.417 trillion.
Over the course of the week, the market capitalization dropped by N1.21 trillion, from N156.624 trillion to N155.417 trillion. Consequently, the NGX All-Share Index closed at 240,750.47 basis points, marking an 860.76 basis points decline (0.36%) from the opening level. The performance of various sectors was mixed: the NGX Oil & Gas, Insurance, and NGX Consumer Goods indices declined, while the NGX Banking index advanced. The NGX Industrial Goods index remained unchanged.
The N555.7 billion drop was driven primarily by profit-taking in the shares of Aradel Holdings Plc, Guaranty Trust Holding Company Plc (GTCO), and Ecobank Transnational Incorporated Plc. Following the decline, investor sentiment remained relatively unchanged, with 27 stocks recording gains and declines. Haldane McCall led gains with a 10% increase, closing at N3.52 per share. Wapic Insurance PLC and UACN PLC followed with gains of 8.44% and 6.56%, respectively.
On the losing side, International Energy Insurance led with a decline of 10%, closing at N4.77 per share, while Aradel Holdings and Universal Insurance PLC each fell by 9.99% and 9.41%, respectively. Other notable declines included Red Star Express PLC (9.26%) and Royal Exchange PLC (8.62%). The total volume traded increased by 177.7% to 1.19 billion units, valued at N37.82 billion and executed in 34,546 deals.
Fortis Global Insurance was the most traded stock by volume, while MTN Nigeria Communications led in terms of traded value at N8.12 billion.
Imperial Asset Managers Limited expressed caution for the short-term, projecting continued cautious and selective behavior in equities. They noted persistent negative market breadth and a decline in the ASI, suggesting profit-taking remains evident. However, an increase in transaction value, despite weaker overall volume, indicates that investors are still positioning themselves in selected high-value and fundamentally strong stocks.
Overall, sentiment remains weak, but selective buying opportunities may arise in quality counter stocks as investors continue to reposition their portfolios.
Written by urgent.news from This Day's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
