Onome Amuge
The Nigerian Exchange (NGX) experienced a sharp reversal on Friday, with the market shedding N516 billion in a single session. The downturn, driven by widespread profit-taking, brought an end to a record-breaking bullish run that had lasted for 26 consecutive trading sessions.
The market’s benchmark All-Share Index (ASI) fell by 0.56 per cent to close at 145,754.91 points, while the market capitalisation dropped to N92.21 trillion. The negative close, despite a positive market breadth with more stocks gaining than losing, was primarily a result of investors cashing out on recently appreciated medium- and large-cap stocks.
Several heavyweights on the exchange were at the center of the profit-taking spree, with their share price declines having a disproportionate impact on the overall market. The top decliners for the day included:
Abbey Mortgage Bank Plc (ABBEYBDS) was the biggest loser of the day, with its price depreciating by 9.87 per cent to close at N6.30. Insurance and financial services firm, Custodian & Allied Plc (CUSTODIAN) saw its share price fall by 8.48 per cent, closing at N40.45. Honeywell Flour Mill Plc (HONYFLOUR) saw its shares drop by 6.42 per cent, signaling a correction from its recent gains.
MTN Nigeria Communications Plc (MTNN), being one of the market’s largest capitalised companies, recorded a 4.17 per cent dip that had a major impact on the overall market index. BUA Cement Plc (BUACEMENT) saw its stock depreciate by 3.66 per cent, contributing substantially to the market’s negative close.
These losses, along with a total of 29 other declining stocks, outweighed the gains made by 41 advancing stocks, which included Champion Breweries and Universal Insurance.
Despite the negative market close, overall trading activity remained robust. The total volume of trades for the day increased by 11.74 per cent to approximately 2.21 billion units, while the total value of trades rose by 18.94 per cent to N32.42 billion.
LINKASSURE led the volume chart, accounting for 26.46 per cent of all trades, followed by UNIVINSURE and AIICO.
In terms of value, Dangote Cement (DANGCEM) emerged as the most traded stock, with trades valued at N7.2 billion, representing 22.33 per cent of the total value. Zenith Bank and MTN Nigeria followed with significant trade values.
Sectoral performance was mixed. While the industrial and consumer goods sectors declined, the insurance, oil & gas, and banking sectors all closed in the green, with the insurance sector rising by 6.11 per cent. This performance reflects a targeted sell-off in specific large-cap stocks rather than a broad-based market panic.
The Friday close brought the market’s winning streak to an end, with the year-to-date return adjusting to 41.61 per cent. However, on a week-on-week basis, the market still recorded a strong advance of 3.18 per cent.
