Nigeria: Nigerian Stocks Slip 0.52 Percent As Profit-Taking Halts Rally

Nigerian stocks slipped 0.52% in the week ending October 2 as investors engaged in profit-taking following recent gains. The NGX All-Share Index closed at 250,808.27 points, down 0.52% from the previous week, while equity market capitalization declined 0.50% to ₦162.843 trillion. The market opened for just four days in October due to Nigeria's Independence Day on October 1.

Despite the weekly decline, the index remained up 61.17% for the year. Trading activity dropped compared to the previous week, with 3.166 billion shares exchanged worth ₦155.023 billion in 206,662 deals, down from 4.689 billion shares worth ₦240.824 billion in 261,198 deals the prior week. Financial services accounted for 61.41% of total volume and 50.14% of total value, followed by Fidelity Bank, VFD Group, and Access Holdings.

Most sector indices declined, with the NGX 30 down 0.52%, Banking Index falling 1.33%, and Premium Index losing 1.38%. The Corporate Governance Index dropped 1.43%. Gains were recorded in the Main Board Index (+0.08%), Insurance (+0.61%), Oil & Gas (+0.05%), and the Growth Index (+1.85%). Oil and gas remained a strong sector, up 133.94% year-to-date.

Other notable gainers included ABC Transport (+45.10%), Critical Minerals Financing Corp (+37.73%), and LivingTrust Mortgage Bank (+32.69%). Decliners included Sovereign Trust Insurance (-12.50%) and eTranzact International (-12%). The Nigerian Exchange Group fell 8.86% to ₦168.60. The market remains near recent record highs, prompting investors to be more selective after a 61.17% year-to-date rise.

The index is still close to its highs, and sector indices have outperformed the benchmark. Some investors may be taking profits, but despite lower rates, the market shows promise with various sectors performing differently.