Nigerian Stocks Tumble N3.6 Trillion on Profit-Taking

The Nigerian stock market reversed recent gains, shedding N3.6 trillion as investors engaged in widespread profit-taking. BUA Cement was among the stocks experiencing a 10 percent drop, contributing to the overall market downturn.

The Nigerian Exchange Limited All-Share Index (NGX ASI) lost 5,668.65 basis points, a 2.35 percent decrease, closing at 235,074.54 basis points. Both Month-to-Date and Year-to-Date returns also fell, settling at -6.1 percent and +51.1 percent respectively.

Sectoral performance was uniformly bearish. The Industrial Goods index saw the largest decline at 8.3 percent, followed by Insurance (-1.0 percent), Banking (-0.7 percent), Consumer Goods (-0.3 percent), and Oil & Gas (-0.1 percent). The market breadth was negative, with 38 decliners compared to 17 advancers.

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the session was characterized by broad-based selling pressure and weaker market turnover, as investors adopted a cautious stance amid the sharp market correction.

Despite the broad decline, some stocks saw gains. Skyway Aviation Handling Company led the advancers with a 9.92 percent increase. On the losers' chart, Dangote Cement, BUA Cement, and Geregu Power each dropped by 10 percent. Trading volume decreased by 10.1 percent to 488.04 million units, valued at N20.92 billion, across 46,161 deals.

Looking ahead, APT Funds & Securities Limited noted the session's broad-based selling pressure and weaker turnover, indicating investor caution. Cowry Assets Management Limited suggested the market is expected to rebound as investors target fundamentally sound stocks, though profit-taking might moderate the recovery speed.

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the market is expected to rebound as investors seek out fundamentally strong stocks, though profit-taking in recently appreciated counters may temper the pace of any recovery.