NGX sheds N1.47trn as sell-off deepens, ASI drops 0.91%

Nigeria’s equities market lost ₦1.47 trillion in market value on Monday as renewed selling pressure across major sectors drove the Nigerian Exchange Limited (NGX) All-Share Index down 0.91 per cent, extending losses in a market increasingly dominated by profit-taking.

The benchmark index fell to 245,278.34 points, reducing its year-to-date return to 57.62 per cent, while total market capitalisation declined to ₦159.26 trillion, reflecting the sharp erosion of investors’ portfolio values during the session.

Market breadth weakened considerably, with 39 stocks closing in the red against only 15 gainers, translating to a breadth ratio of 0.4 times and underscoring the widespread nature of the sell-off.

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Vitafoam Nigeria, Cutix and Omatek Ventures led the decliners, while Multitrex Integrated Foods, Critical Minerals Financing Corporation and Austin Laz and Company featured among the advancers.

The downturn was broad-based, with all major sectoral indices, except Commodities, closing lower as investors reduced exposure to equities amid sustained selling pressure.

The Industrial Goods index recorded the steepest decline, shedding 2.90 per cent, followed by the Banking index, which fell 1.40 per cent.

The Insurance index lost 0.89 per cent, while Consumer Goods and Oil and Gas declined by 0.16 per cent and 0.06 per cent, respectively. The Commodities index closed flat.

The performance suggests that selling pressure extended beyond isolated stocks, with losses in industrial and banking shares contributing significantly to the market’s overall weakness.

Despite the sharp decline in prices, trading activity improved across key indicators, pointing to increased market participation as investors repositioned their portfolios.

Total volume of shares traded rose 35.57 per cent to 349.4 million shares, while transaction value increased 37.94 per cent to ₦18.03 billion. The number of deals also climbed 34.84 per cent to 43,193.

The simultaneous increase in trading volume, turnover and deal count amid falling prices indicates heightened activity during the sell-off, although the available market data does not establish whether the transactions were driven primarily by institutional repositioning, retail selling or bargain purchases.

The market’s decline also comes against the backdrop of substantial gains recorded since the beginning of the year, leaving investors exposed to incentives to lock in profits after the strong rally.

With the year-to-date return moderating to 57.62 per cent, the latest session highlights the tension between profit-taking by investors seeking to preserve accumulated gains and potential bargain-hunting by those looking to enter the market at lower prices.

Analysts expect bargain-hunting to offer some support for a near-term recovery, particularly in fundamentally strong stocks whose prices have retreated. However, persistent profit-taking could continue to limit any rebound if selling pressure remains elevated.

The direction of the market in subsequent sessions will therefore depend partly on whether demand from bargain hunters can absorb the supply of shares coming from investors seeking to realise gains.