NGX slips below N130tn as profit-taking triggers market pullback

By: Amarachi Okonkwo

The Nigerian Exchange Limited (NGX) recorded a mild downturn on Wednesday, as cautious trading and profit-taking by investors dragged total market capitalisation below the critical N130tn mark, signalling a pause in the market’s recent bullish momentum.

At the close of trading, the benchmark NGX All-Share Index (ASI) declined by 0.69 per cent to settle at 201,156.86 points, down from its opening level of 202,559.41 points. The dip translated into a loss of approximately N900bn in market value, with capitalisation falling to N129.125tn from N130.025tn at the start of the session.

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Market watchers attributed the decline to a technical correction following a sustained rally that had pushed equities to record highs in recent sessions. Analysts noted that such pullbacks are typical in periods of rapid price appreciation, as investors seek to lock in gains and reassess market positions.

Investor sentiment remained broadly cautious throughout the trading day, with market breadth closing negative. A total of 38 stocks recorded price declines, outweighing 31 gainers, underscoring the bearish tilt that defined the mid-week session.

Despite the overall decline, a number of equities posted notable gains, reflecting pockets of resilience in the market. NSLTECH topped the gainers’ chart with a 10.00 per cent increase, rising from N1.20 to N1.32 per share. It was closely followed by Guinness Nigeria, which advanced by 9.92 per cent to close at N423.20.

Other strong performers included John Holt, Sovereign Trust Insurance, and Linkage Assurance, each recording gains in excess of nine per cent.

On the losers’ chart, Red Star Express led with a 9.98 per cent decline to close at N25.70. Other major laggards included Aradel and Presco, which fell by 9.68 per cent and 9.30 per cent respectively, exerting significant downward pressure on the overall market capitalisation. Additional decliners were Living Trust Mortgage Bank and DAAR Communications.

Meanwhile, some heavyweight stocks showed resilience, closing unchanged despite the broader market weakness. These included Dangote Cement, Julius Berger, Vitafoam Nigeria, and Staco Insurance Plc.

Analysts said the current trend reflects a consolidation phase, with investors repositioning portfolios after a period of sustained gains. Attention is now shifting to upcoming corporate earnings releases and macroeconomic indicators, which are expected to provide clearer direction for the market.

Looking ahead, market participants anticipate continued cautious trading in the near term, as the NGX searches for a new support level. The interplay between profit-taking activities and fresh buying interest is likely to determine the trajectory of the market in subsequent sessions.