Onome Amuge
Nigeria’s equity market retreated on Thursday as investors locked in profits after a recent rally, shaving more than half a trillion naira off market value.
Data from the Nigerian Exchange (NGX) show that total market capitalisation fell to N105.88 trillion, down from N106.44 trillion a day earlier, a contraction of N557.1 billion. The benchmark NGX All-Share Index declined by 0.52 per cent, or 870.23 basis points, to close at 165,397.37, retreating from Wednesday’s 166,267.6.
The pullback came amid broad-based selling pressure, with all major sector indices closing in negative territory. Market participants attributed the weakness to profit-taking by sell-side investors following recent gains, as portfolios were rebalanced in anticipation of forthcoming fourth-quarter corporate earnings that are expected to serve as the next catalyst for a potential re-rating of equities.
Turnover metrics softened alongside prices. Trading on Thursday saw 768.25 million shares exchanged across 46,481 deals, with a total value of N21.18 billion. This compared with 822.73 million shares worth N24.93 billion traded in 43,548 deals in the previous session, representing declines of 6.6 per cent in volume and 15.01 per cent in value.
Sector performance was uniformly bearish. The insurance index led the decline, shedding 1.35 per cent, dragged down by losses in NEM Insurance, whose shares fell 5.60 per cent to close at N32 from N33.90. The consumer goods index followed closely, down 1.31 per cent, as International Breweries tumbled 6 per cent to N14.10 from N15, reflecting persistent concerns about margin pressures in the fast-moving consumer goods space amid elevated input costs and subdued household purchasing power.
The banking index dropped 0.95 per cent, weighed down by losses in heavyweight lenders. Zenith Bank declined 3.40 per cent, contributing materially to the index’s fall, while investors continued to reassess the sector after a strong run-up earlier in the year. Industrial goods stocks were also weaker, with the index down 0.71 per cent, largely due to a 5.06 per cent slide in Lafarge Africa (WAPCO), whose shares fell to N150 from N158. The oil and gas index edged 0.15 per cent lower, pressured by a 2.08 per cent decline in Oando. The commodity index was flat, offering little respite in an otherwise negative session.
Market breadth underscored the bearish tone. Decliners outnumbered gainers by 39 to 36, producing a negative breadth ratio of 0.92x. Losses were led by Omatek Ventures, which fell 9.40 per cent to N2.12 from N2.34, making it the worst-performing stock of the day. International Insurance Energy declined 6.06 per cent to N3.10, while Lafarge Africa’s drop reinforced the drag from industrial names.
Despite the overall weakness, pockets of strength emerged among smaller and mid-cap stocks. Infinity Trust Mortgage Bank rose 10 per cent to N7.70 from N7, while John Holt advanced by the same margin to close at N7.70 from N6.30. NCR also gained 10 per cent, climbing to N188.15 from N171.05, reflecting renewed investor interest in select technology and services names. UHOMREIT appreciated to N64.90 from N59, while FGSUK2033S6 added N9.99 to close at N110, pointing to selective demand in niche instruments.
Activity on individual counters highlighted where investors concentrated their trades. Access Holdings emerged as the most actively traded stock by volume, with 54.27 million shares exchanged, valued at N1.22 billion, accounting for 7.1 per cent of total volume. Deap Capital followed with 51.15m shares worth N299.54 million, while Tantalizers saw 41.86 million shares traded for N169.5m. Omatek, despite being the session’s biggest laggard, recorded 33.52m shares worth N77.9 million, indicating heightened speculative interest. Japaul Gold also featured prominently, with 31.49 million shares valued at N80.08m changing hands.
By value, Geregu Power topped the chart, with trades worth N2.8 billion, representing 13.1 per cent of total market value traded. The prominence of large-cap names by value, even on a down day, reflects the continued dominance of institutional flows in shaping market direction.
Analysts note that the sell-off does not necessarily signal a reversal of the broader bullish trend that has characterised the Nigerian market in recent months, but rather a consolidation phase. Valuations in several sectors have expanded rapidly, prompting investors to lock in gains while awaiting clearer signals from corporate earnings and macroeconomic data. Expectations around earnings resilience, dividend declarations and guidance on costs and revenue growth are likely to determine whether the market can regain upward momentum.
Macroeconomic considerations remain in focus. Persistently high inflation, tight monetary conditions and currency dynamics continue to influence investor sentiment, particularly for consumer-facing and manufacturing companies. At the same time, reforms aimed at improving market transparency and attracting foreign capital have supported longer-term optimism, even as near-term volatility persists.
