Equities market loses N2.28 trillion amid profit-taking pressure

Nigeria's stock market experienced a significant downturn on Wednesday, shedding N2.28 trillion in capitalisation as widespread profit-taking pressured equities. This marked the third consecutive day of losses for the domestic bourse, with key performance indicators falling due to price depreciation in large and medium-capitalized stocks.

The All-Share Index dropped 3,736.05 points, a 1.51% decline, to settle at 243,132.61 points. This brought the year-to-date return down to 56.24%. The market capitalisation of listed equities closed at N155.94 trillion.

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The market is expected to sustain its bearish tone as continued profit-taking activity weighs on investor sentiment.

Market analysts attributed the sharp contraction to profit-taking activities in prominent equities such as MTN Nigeria Communications, Lafarge Africa, and FBN Holdings. Analysts at Cowry Assets Management Limited noted that investor sentiment remains weak, predicting a sustained bearish tone in the market due to ongoing sell-offs.

The market breadth was broadly negative, with 43 stocks declining compared to 15 advancers. Lafarge Africa was the top loser, dropping 9.97%, while Abbey Mortgage Bank led the gainers with a 9.93% rise. Despite the price depreciation, total trading volume increased by 57.1% to 922.97 million units, valued at N42.27 billion.

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Overall, the session was characterised by strong trading turnover amid sustained bearish pressure, suggesting that increased market activity was driven largely by sell-side t