Investors on the Nigerian Exchange Limited lost about US$1.7 billion in a single trading session after widespread profit-taking triggered a broad sell-off in major listed companies, extending a recent bearish trend in the market.
The NGX All-Share Index fell 1.63 per cent, shedding 3,729.11 points to close at 225,690.07, while market capitalisation declined from N147.22 trillion to N144.82 trillion.
The sell-off was driven largely by losses in heavyweight stocks including Dangote Cement, Zenith Bank, Aradel Holdings and Transcorp, which all recorded sharp declines as investors locked in gains following months of strong market performance.
Despite the downturn, the market has still delivered a year-to-date return of over 45 per cent, reflecting earlier bullish momentum before the recent correction.
The Oil and Gas Index recorded the steepest sector decline, falling 4.41 per cent, followed by Industrial Goods, which dropped 3.65 per cent. Commodity, Banking and Consumer Goods indices also closed lower.
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The only sector to post gains was the Insurance Index, which rose 0.42 per cent as investors selectively accumulated insurance stocks such as Guinea Insurance and Regency Alliance.
Trading activity also slowed significantly, with volume nearly halving and total transaction value dropping by more than 65 per cent compared with the previous session.
Sterling Financial Holdings Company emerged as the most actively traded stock by volume, while Zenith Bank led in value terms, despite also being among the day’s losers.
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Analysts say the correction reflects normal profit-taking after sustained gains, but caution that near-term sentiment may remain fragile as investors reposition portfolios ahead of second-quarter earnings releases.
However, they expect bargain hunting to gradually support the market if valuations become more attractive in selected blue-chip stocks.
The sell-off underscores the cyclical nature of equities markets in Nigeria, where strong rallies are often followed by sharp short-term corrections driven by institutional profit-taking.
