The Nigerian stock market began the new trading week on a weaker note on Monday as widespread profit-taking in major stocks wiped off N76.56 billion from investors’ wealth, ending the market’s recent rally.
The Nigerian Exchange Limited (NGX) All-Share Index declined by 0.05 per cent to close at 247,238.74 points from the previous session, while market capitalisation fell to N159.51 trillion. Despite the pullback, the market has still delivered an impressive year-to-date return of 58.88 per cent and a month-to-date gain of 7.8 per cent.
The decline was driven mainly by losses in heavyweight stocks, including BUA Cement, Access Holdings, International Breweries, Oando and Fidson Healthcare. Access Holdings fell 7.5 per cent, International Breweries shed 9.9 per cent, Oando dropped 4.3 per cent, while BUA Cement declined 2.5 per cent. Fidson Healthcare lost nine per cent as investors locked in gains.
The bearish sentiment extended across most sectors of the market, with the Insurance Index recording the steepest decline of 1.69 per cent. The Consumer Goods Index fell 1.07 per cent, while the Commodity, Oil and Gas, and Industrial Goods indices also closed lower. The Banking Index was the lone bright spot, rising 0.78 per cent on renewed buying interest in banking stocks.
Market breadth remained negative as losers outnumbered gainers. Between 31 and 32 stocks closed lower, compared with 26 to 27 gainers, reflecting cautious investor sentiment.
Among the biggest decliners were Transcorp Power, which lost 10 per cent, International Breweries, Fidson Healthcare, Neimeth International Pharmaceuticals and Austin Laz and Company. On the gainers’ chart, Thomas Wyatt Nigeria and Lasaco Assurance each advanced 9.9 per cent, while Consolidated Hallmark Insurance, Chams Holding Company and Capital Market Finance Company also recorded strong gains.
Trading activity presented a mixed picture. Total volume traded easing by 15.1 per cent to 480.02 million shares valued at N51.12 billion in 63,980 deals. Access Holdings emerged as the most actively traded stock by volume with about 47.6 million shares changing hands, while Aradel Holdings dominated the value chart with transactions worth approximately N27.57 billion.
Market analysts said Monday’s decline largely reflected profit-taking in stocks that had posted strong gains in recent weeks rather than a broad deterioration in market fundamentals.
They noted that although the market may be positioned for a rebound following the relatively modest decline, continued profit-taking in recently appreciated counters could slow the pace of recovery in the near term.