The Nigerian Exchange Limited (NGX) opened the week on a negative note as persistent profit-taking dragged the All-Share Index (ASI) down by 0.50 per cent to close at 148,781.90 points on Monday.
This decline resulted in a N471.99bn loss in market capitalisation, which fell to N94.53tn, trimming the year-to-date return to 44.55 per cent.
The market downturn was largely driven by sell-offs in key stocks such as Linkage Assurance (-10.00%), NAHCO (-9.95%), and Guaranty Trust Holding Company (-0.59%), among others.
Market sentiment also remained weak, with market breadth settling at 0.33x, as 40 losers outpaced 13 gainers. Aso Savings (+10.00%), Cornerstone Insurance (+8.70%), and Fidelity Bank (+4.81%) were the top-performing stocks of the day, offering some relief to investors amid widespread declines.
Trading activity slowed considerably as total volume traded dropped by 30.9 per cent to 364.35 million units, while value traded fell by 26.2 per cent to N11.35bn. However, deal count increased by 32.18 per cent to 32,564 trades, a trend analysts attributed to a rise in smaller retail transactions.
Cowry Asset Management Limited, in its daily market report, observed that the uptick in deal count despite lower trading volume reflects growing retail investor participation. “The trading dynamics reflected reduced investor appetite. The confluence of weakened volume, lower values, and fragmented trading underscores cautious positioning as market participants continue de-risking strategies in response to challenging macroeconomic conditions,” the firm said.
Access Holdings Plc (AccessCorp) dominated the volume chart with 22.8 million units, representing 6.3 per cent of total volume traded. On the other hand, Dangote Cement Plc led the value chart, with N2.15bn, accounting for 19.0 per cent of total value traded.
Across the sectoral indices, the bears maintained dominance. The insurance index led the losses, plunging by 4.24 per cent due to major declines in AIICO Insurance (-9.89%) and Linkage Assurance (-10.00%). The consumer goods index also fell by 1.32 per cent, dragged by International Breweries (-8.33%) and other blue-chip stocks.
In the banking sector, the index dropped by 0.65 per cent, pressured by declines in United Bank for Africa (-4.88%), while the industrial goods index slipped marginally by 0.01 per cent, following weakness in Cutix (-6.06%).
Meanwhile, the commodity and oil and gas indices closed flat, reflecting subdued trading in those segments.
Market analysts noted that the pullback follows a strong rally seen in previous weeks, as investors are taking profits amid uncertainty over interest rate movements, inflationary pressures, and foreign exchange volatility.
Despite the bearish mood, analysts expect selective bargain-hunting in undervalued banking and industrial stocks in the coming days, particularly if macroeconomic data releases show signs of improvement.
The NGX has now recorded two consecutive sessions of losses, reflecting investors’ cautious positioning amid global and domestic economic headwinds.
