Onome Amuge
Nigeria’s equities market suffered a reversal on Wednesday, with investors wiping N324.3bn off the Nigerian Exchange’s (NGX) total capitalisation, as profit-taking in several blue-chip and mid-tier counters dragged the benchmark index lower.
The NGX All-Share Index (ASI) fell 0.36 per cent to close at 141,248.76 points, cutting the year-to-date return to 37.23 per cent. Total market capitalisation dropped to N89.37tn from N89.69 trillion in the previous session, reflecting broad-based losses across key sectoral indices.
Trading data showed a decidedly negative market breadth: 40 stocks declined compared to just 16 gainers, with 80 others closing flat. Analysts described the move as a corrective phase, following several sessions of bullish activity that had pushed valuations higher.
The major declines of the session came from Cornerstone Insurance Plc and RT Briscoe Nigeria Plc, which both slumped by 10 per cent apiece.
Cornerstone’s share price fell to N6.39 from N7.10, shaving N0.71 off each unit and reducing its market capitalisation by billions. The insurer, a mid-cap stock that has enjoyed significant liquidity in recent months, has been one of the better-performing counters in 2025, buoyed by optimism around the broader insurance sector and expectations of growth in premiums. But analysts said the company’s stock had run ahead of fundamentals in the short term, leaving it vulnerable to a wave of profit-taking.
“The pullback in Cornerstone is largely technical. The insurance sector saw some speculative inflows recently, but we expect consolidation before another leg up,” noted a research note from Atlass Portfolio Limited. “
Meanwhile, RT Briscoe Nigeria Plc, the diversified automotive and property services group, also suffered a bruising session. Its share price dropped from N3.40 to N3.06, a 10 per cent decline, as investors pared back exposure to consumer discretionary and cyclical plays. RT Briscoe, one of the more volatile mid-cap counters, has often seen sharp swings tied to investor sentiment rather than fundamentals.
The company’s auto distribution and engineering businesses remain challenged by Nigeria’s high inflation, elevated interest rates, and subdued consumer spending, conditions that have weighed on the sector. Market watchers said Wednesday’s decline underscored lingering scepticism about near-term earnings prospects.
Alongside the two top losers, other heavy fallers included NGX Group (-9.70 per cent), Guinness Nigeria (-7.28 per cent), VFD Group (-5.98 per cent), Guaranty Trust Holding Company (-3.06 per cent), and Ellah Lakes (-2.29 per cent).
Despite the overall losses on the NGX, activity levels picked up markedly. The total volume of trades rose 18.94 per cent, while total value jumped 79.05 per cent compared to the prior session.
In all, investors exchanged 682.89 million shares worth N22.22bn across 28,695 deals. The rise in value traded indicated institutional participation, with block trades in energy and consumer counters driving flows.
First City Monument Bank (FCMB) led the volume chart with 108 million shares traded in 540 deals, representing 15.99 per cent of the day’s total volume. It was followed by Sterling Bank (86mn shares), Cutix Plc (45mn shares), Access Holdings (40mn shares), and FBN Holdings (36mn shares).
On the value side, Aradel Holdings dominated, accounting for 18.56 per cent of total market value with N4 billion worth of shares traded in 370 deals. Seplat Petroleum followed with N2.6 billion, while Nestlé Nigeria posted N1.2 billion in trades.
The session’s losses were spread unevenly across sectors. Banking stocks fell 0.76 per cent, dragged lower by GTCO and Access, while the insurance sector lost 3.42 per cent, largely on the back of Cornerstone’s slide. Consumer goods also retreated 0.86 per cent, weighed down by Guinness Nigeria.
In contrast, oil and gas eked out a modest 0.18 per cent gain, lifted by continued strength in upstream players. The industrial and commodities sectors closed flat.
There were, however, pockets of resilience. Deap Capital Management & Trust led the advancers’ chart, rising 4.82 per cent to N1.74. Legend Internet added 4.63 per cent to N5.65, buoyed by recent earnings results, while Honeywell Flour gained 4.17 per cent to close at N22.50.
Other notable gainers included Tantalizer (+3.60 per cent), Africa Prudential (+3.13 per cent), and United Bank for Africa (+2.27 per cent).
Still, the number of decliners dwarfed gainers, underscoring the prevailing cautious sentiment.
Market analysts said Wednesday’s losses were likely to prove a short-term pullback rather than the start of a deeper correction, noting that strong year-to-date gains and continued domestic liquidity support underpinned a generally positive outlook for equities.
“We expect bargain-hunting to re-emerge at these levels. However, volatility will persist as investors weigh corporate earnings announcements and broader macroeconomic indicators,” said Atlass Portfolio in its note to clients. “
The Nigerian equities market has delivered a strong 37.23 per cent return year-to-date, outpacing inflation and other asset classes. But the sharp falls in names such as Cornerstone and RT Briscoe serve as a reminder of the risks of overheated valuations, particularly in sectors where fundamentals remain fragile.
For now, the NGX remains on course for one of its strongest annual performances in recent years, but Wednesday’s session served as a reminder that profit-taking and sector-specific headwinds can quickly reshape market dynamics.
