Nigeria’s Equity Market Dips By 0.29% As Profit-Taking Persists

Nigeria’s equity market declined by 0.29% on Wednesday, losing N185 billion, driven by profit-taking activities in key stocks.

At the Nigerian Exchange Limited (NGX), the All-Share Index (ASI) fell to 102,836.13 points, down from 103,137.99 points. The market capitalisation also dropped from N63.332 trillion to N63.147 trillion.

Speaking on this trend, analysts at Vetiva Research noted, “High-interest rates are making Pension Fund Administrators (PFAs) favour fixed income investments, which will likely keep market sentiment muted.”

They added, “Despite this, we remain cautiously optimistic about investors sustaining positions in bellwether stocks to find value.”

Key Stocks Drag Market Down

Major losses in stocks such as Multiverse Mining, May & Baker, Prestige Assurance, Red Star Express, and Guinea Insurance weighed heavily on the equity market.

Multiverse saw the most significant decline, falling from N11.15 to N10.05. The company’s 9.87% drop erased N1.10 per share.

May & Baker followed closely, dropping from N9.20 to N8.30. Investors saw a loss of 90 kobo per share, equivalent to a 9.78% decrease.

Prestige Assurance wasn’t spared either, as it fell by 7.69%, losing 11 kobo to close at N1.32. Guinea Insurance and Red Star Express recorded declines of 7.45% and 4.75%, respectively.

Investors Active in Top-Tier Stocks

Despite the losses, trading volumes remained strong in top-tier stocks. Access Holdings, UBA, Sterling Bank, AIICO Insurance, and Zenith Bank dominated the market activity.

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In total, investors completed 10,766 deals, exchanging 394,815,193 shares worth N15.156 billion.

A trader at NGX, Emmanuel Adewale, explained, “Investors are taking profit after recent gains in some sectors. The market has seen a lot of activity in banking stocks, which remain attractive for short-term gains.”

Year-to-Date Performance Turns Negative

With Wednesday’s decline, the equity market’s year-to-date return slipped into the negative at -0.09%. This marks a reversal from earlier in the week, where gains pushed the market up by 0.47%.

Market analyst Grace Ibekwe said, “The equity market is under pressure as investors move to secure gains. However, we expect a rebound as earnings reports and corporate actions provide more clarity.”

Outlook for the Equity Market

The equity market continues to face mixed sentiment as investors navigate high-interest rates and shifting preferences toward fixed-income investments.

Ibekwe added, “Investors are carefully watching market trends. While some are exiting positions in stocks like Multiverse and Prestige Assurance, others are moving into safer assets.”

Despite the decline, experts remain optimistic about the resilience of bellwether stocks and anticipate improved performance in coming weeks.