Profit-taking triggered a broad sell-off on the Nigerian Exchange (NGX) on Wednesday, reversing the previous day's gains and slashing N648 billion from investors' portfolios. The All-Share Index (ASI) dropped by 0.41% to close at 246,980.17 points, down from Tuesday's 247,984.55 points, according to data from the NGX.
Market Breadth Turns Negative
Market capitalisation fell from N159.992 trillion to N159.344 trillion, eroding N648 billion in a single trading session. Declining stocks outpaced gainers by a wide margin, with 45 counters closing in the red against 23 that posted gains. Major blue-chip names including MTN Nigeria, Dangote Cement, Seplat Energy, Custodian Investment, and Julius Berger ended the session flat.
Top Gainers and Losers
Insurance counters dominated the gainers' list: Lasaco Assurance Plc led with a 10.00% rise to N2.42, followed by CNIF which gained 9.98% to N154.30. NEM Insurance Plc added 9.97% to N34.20, SUNU Assurances Nigeria Plc climbed 9.83% to N3.91, and Prestige Assurance Plc rose 7.14% to N1.50.
On the losing side, Cornerstone Insurance Plc fell 10.00% to N5.40, Legend Internet Plc dropped 10.00% to N4.05, The Initiates Plc declined 9.91% to N30.00, Guinea Insurance Plc lost 9.78% to N0.83, and ABC Transport Plc slipped 9.45% to N5.75.
Sectoral Performance Mixed
Broad selling pressure weighed on real estate, industrial, and select banking stocks. The insurance sector, however, posted strong gains that partially offset the overall decline. Analysts at the NGX attributed the sell-off to profit-taking following recent rallies, as investors opted to lock in gains ahead of the release of more corporate earnings.
Investors Eye Corporate Earnings
Market observers expect activity to remain mixed in the coming sessions, with participants balancing profit-taking against bargain hunting. The NGX total volume traded on Wednesday stood at 1.2 billion shares worth N15.8 billion, up from the previous session's 1.1 billion shares valued at N14.2 billion, indicating sustained investor engagement despite the downturn.
The negative close reverses the modest gain recorded on Tuesday, when the ASI inched up by 0.15%. Year-to-date, the index remains positive at +8.3%, supported by strong earnings from banking and consumer goods sectors earlier in the year.
In a related development, Femi Otedola, Chairman of First HoldCo Plc, recently increased his stake in the banking group to 20.42% through a private placement at N44 per share, spending about N30 billion. The deal highlights ongoing insider confidence in Nigeria's financial sector despite short-term market volatility.
