The Nigerian stock market’s impressive rally, which had sustained momentum for twenty-three consecutive sessions, finally came to a halt this past Thursday. The trading floor of the Nigerian Exchange Limited (NGX) witnessed a shift in sentiment as investors engaged in profit-taking, resulting in a significant downturn. By the close of the session, the collective loss amounted to N457 billion, marking a sharp reversal from the gains recorded just a day prior.
This contraction was reflected in the key market indicators. The market capitalization, which represents the total value of all listed equities, dipped by 0.43 percent. It fell from a Wednesday high of N106.780 trillion to close at N106.323 trillion. Similarly, the NGX All-Share Index, a primary gauge of market performance, shed 714.66 points. It settled at 166,057.29, down from the previous session’s 166,771.95. The atmosphere was decidedly bearish, with market breadth closing in negative territory; forty-one stocks recorded price declines compared to thirty-six that managed to appreciate.
Among the equities that weighed heavily on the market were Mc Nicholas, Caverton Offshore Support Group, and Ikeja Hotel. Other notable decliners included FTN Cocoa Processors and Neimeth International Pharmaceutical. These losses underscored the eagerness of some traders to cash out after the prolonged bullish run. However, it was not all gloom. Nestlé Nigeria led the gainers’ chart, showing resilience amidst the sell-off. It was joined in the green zone by NCR Nigeria, Jaiz Bank, and Morison Industries, proving that pockets of opportunity remained even in a retracting market.
Despite the drop in indices, trading activity itself remained robust, suggesting that investor interest has not waned. The volume of shares exchanged surged by 36 percent, with 1.03 billion shares changing hands. The value of these transactions also saw a 6 percent rise, totaling N31.6 billion across 51,227 deals. Zenith Bank distinguished itself as the most traded stock by value, accounting for N5.03 billion—nearly 16 percent of the day’s total turnover. In terms of volume, Access Corporation and Zenith Bank took the lead.
This pullback serves as a reminder of the cyclical nature of financial markets. Just the day before, the market had expanded investors’ portfolios by N598 billion. While the streak has ended, the heightened trading volume indicates a market that remains active and dynamic, pausing perhaps only to catch its breath before determining its next direction.
