NGX Sheds ₦206bn as 55 Stocks Decline on Profit-Taking
Shares of 55 companies listed on the Nigerian Exchange Limited (NGX) declined last week as investors took profits, while 20 stocks recorded price gains, according to the reported market performance.
The decline reflected a period of market correction as investors reassessed their portfolios following substantial gains earlier in the year. Although some equities attracted fresh buying interest, the gains were insufficient to offset losses in other stocks, leaving the broader market lower.
The NGX market capitalisation fell by more than ₦206bn, closing at ₦160.519tn compared with ₦160.725tn at the end of the previous week. The NGX All-Share Index also declined to 247,222.27 points from 247,539.73 points.
Despite the drop in the benchmark indicators, trading activity increased by volume and value. Investors exchanged 2.024 billion shares worth ₦110.773bn in 173,113 deals during the week, compared with 1.659 billion shares valued at ₦98.088bn in 184,632 deals in the preceding week.
The Financial Services Industry led trading by volume, recording 1.111 billion shares valued at ₦53.908bn across 81,787 deals. The sector accounted for 54.89 per cent of total equity turnover volume and 48.66 per cent of turnover value.
The Consumer Goods Industry ranked second, with 394.039 million shares worth ₦9.811bn traded in 17,912 deals. The Agriculture Industry followed with 147.170 million shares valued at ₦2.821bn across 7,462 deals.
Analysts at InvestData Consulting Limited said the market’s near-term outlook remained cautious as investors weighed the need to protect accumulated gains against opportunities in selected stocks. They noted that the market’s substantial year-to-date appreciation provided context for the recent selling pressure.
The analysts warned that continued selling in banking, energy and other influential stocks could prolong the market’s consolidation. They added that further weakness among large-capitalisation equities could weigh on the benchmark index even if selected stocks continued to record gains.
The market’s performance also came amid rising international crude oil prices linked in the report to escalating geopolitical tensions in the Middle East. While higher oil prices could support Nigeria’s export earnings and government revenue, their potential effects on domestic fuel costs, inflation and business expenses remain important considerations for investors.