NGX loses N648bn as renewed profit-taking hits equities

The Nigerian stock market reversed its recent gains on Wednesday, succumbing to a widespread sell-off driven by renewed profit-taking that erased an estimated N648 billion from investors' wealth. The market breadth closed negative, with declining equities nearly doubling the number of price gainers, indicating a dominant mood of profit-taking among investors.

At the close of trading, the Nigerian Exchange All-Share Index (NGX ASI) fell by 0.41%, dropping from an opening of 247,984.55 basis points to settle at 246,980.17 basis points. Correspondingly, the total market capitalization contracted from N159.992 trillion at the session's start to N159.344 trillion by the close.

The downturn was led by significant decliners such as Cornerstone Insurance Plc, which shed 10.00%, and Legend Internet Plc, also down 10.00%. Other notable losers included The Initiates Plc (-9.91%), Guinea Insurance Plc (-9.78%), and ABC Transport Plc (-9.45%).

Despite the overall bearish sentiment, insurance stocks attracted considerable interest from bargain hunters. Lasaco Assurance Plc led the gainers with a 10.00% appreciation, followed by CNIF (+9.98%) and NEM Insurance Plc (+9.97%). SUNU Assurances Nigeria Plc and Prestige Assurance Plc also recorded gains.

Meanwhile, major heavyweight stocks like MTN Nigeria Communications Plc, Dangote Cement Plc, and Seplat Energy Plc remained unchanged, providing a buffer against a steeper market decline. Market watchers anticipate mixed trading in the near term as investors balance profit-taking strategies with bargain-hunting opportunities ahead of upcoming corporate earnings releases.