GTCO, Zenith Bank, others cool off stock market bullish run

The Nigerian Exchange (NGX) experienced a market-wide sell-off, as profit-taking and selling pressure took hold, impacting major banking equities. The total market capitalization dropped by hundreds of billions of naira due to declines across prominent banking, industrial, and consumer goods stocks. Leading financial institutions like GTCO, Zenith Bank, UBA, Access Holdings, and Fidelity Bank all reported corrections in their stock prices.

The All-Share Index closed near 252,566, marking a year-to-date increase of over 62%. However, the market cooled off, transitioning from hype-driven momentum to an earnings-led phase. The hype from CBN recapitalization resolutions had matured, and the market was now assessing valuations in a tightening macroeconomic environment.

Despite strong corporate earnings, such as GTCO's record half-year profit of N603 billion, the NGX All-Share Index retreated from recent record highs. Banking and industrial sectors led the decline, while the cement and consumer goods sectors underperformed. Market participants were monitoring support levels, as resistance remained at previous peak levels.

The Nigerian Exchange had still achieved substantial year-to-date gains, supported by systemic liquidity and sustained confidence among commercial investors. Factors such as domestic inflation, inflation-hedging options, substantial capital inflows, and macroeconomic improvements contributed to the resilience of Nigerian stocks.

Investors remained optimistic, expecting declining costs, benefits from currency harmonization, and stronger corporate balance sheets.