Trading on the Nigerian Exchange Limited closed sharply lower on Thursday, with investor wealth falling by roughly US$330 million as equities succumbed to persistent sell pressure. The session marked the third consecutive day of bearish trading, following weeks of a bullish run that had lifted confidence and prompted portfolio gains earlier in the year.
Official figures from the Daily Official List showed the All-Share Index (ASI) slipping to 193,567.81 points, while total market capitalisation moderated to approximately US$79.9 billion, translating to a loss of 514 billion naira in value. Market analysts said the decline largely reflects profit-taking, as investors reposition their holdings amid the ongoing corporate earnings season. Many participants were seen securing short-term gains while assessing the outlook for dividend announcements and financial results.
Sectoral performance across the exchange was predominantly negative. The industrial goods index recorded the steepest losses, weighed down by selling in heavyweight manufacturing companies. Stocks in the consumer goods sector also experienced marginal declines, as investors trimmed positions in bellwether counters to realise profits. Banking stocks, which had supported the market earlier in the week, retreated as investors locked in gains following midweek rallies. Similarly, insurance equities remained soft, reflecting subdued liquidity and cautious participation by institutional and retail investors.
In contrast, the oil and gas sector bucked the broader trend, posting a modest 0.12 percent gain, supported by selective buying activity. Analysts noted that while energy stocks provided limited support to the market, the overall tone remained bearish due to widespread selling across other key sectors.
Market breadth was negative, with 38 declining stocks outpacing 30 advancing counters, highlighting the predominance of sell-offs across the board. Among the session’s top losers were Jaiz Bank, which fell nearly 10 percent, along with Ikeja Hotel, John Holt, Enamelware Plc, and Cadbury Nigeria. Conversely, gainers included FTN Cocoa, RT Briscoe, DEAP Capital, JapaulGold, and Ellah Lakes, all posting daily increases close to the trading limit of 10 percent.
Trading activity weakened notably compared with the previous session. Share volume fell 36.01 percent to 868.54 million units, while transaction value dropped 30.58 percent to about $20.3 million. The number of executed deals edged lower by 0.48 percent to 69,310 transactions, indicating reduced market participation. Analysts said the slowdown in activity reflected investor caution, as participants weighed the impact of corporate earnings releases, macroeconomic trends, and market valuations before committing to new positions.
Despite the pullback, the Nigerian equities market has delivered strong performance year-to-date, bolstered by improving corporate earnings expectations and sustained domestic investor participation. However, market watchers cautioned that macroeconomic factors including inflationary pressures, interest rate movements, and currency stability remain key drivers of investor sentiment.
Analysts noted that the current decline illustrates the sensitivity of emerging equity markets to short-term trading strategies, particularly during periods of profit-taking. While some investors may see the downturn as an opportunity to acquire fundamentally strong stocks at lower valuations, others remain cautious, monitoring the corporate earnings season and broader economic indicators.
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Overall, the session underscores the ongoing volatility in the Nigerian bourse, where gains can be quickly offset by profit-taking, and highlights the importance of prudent portfolio management as investors navigate market fluctuations. While short-term losses are common during earnings cycles, long-term investors continue to focus on dividend prospects, corporate fundamentals, and growth potential across Nigeria’s listed companies.
