By Benson Daniel
Profit-taking in major banking stocks pushed the Nigerian equities market further into negative territory on Tuesday, wiping N544.5 billion off its total market capitalisation as investors continued to lock in gains from the recent market rally.
The NGX All-Share Index declined by 0.35 per cent to close at 241,611.23 points, extending the market’s losing streak to six consecutive sessions. Market capitalisation consequently fell from N156.52 trillion to N155.97 trillion, while the year-to-date market return moderated to 55.26 per cent.
The latest decline was largely driven by selling pressure in heavyweight stocks, particularly First HoldCo and Fidelity Bank, as investors repositioned their portfolios following significant gains recorded in previous sessions.
First HoldCo fell by 5.71 per cent from N140 to N132 per share, shedding N8 per share in the session. Fidelity Bank recorded an even sharper decline of 6.59 per cent, making it the biggest large-cap decliner during the trading session.
NGX Group also declined by 3.83 per cent, while other major stocks that contributed to the market weakness included Unilever Nigeria, which fell by 3.64 per cent, Dangote Sugar, down 1.57 per cent, GTCO, down 0.39 per cent, UBA, down 0.33 per cent, Oando, down 0.28 per cent, and Zenith Bank, which declined by 0.16 per cent.
Market breadth remained negative, with 37 stocks recording losses compared with 22 gainers, indicating that the selling pressure was relatively broad across listed equities.
Trading activity also weakened considerably during the session. A total of 429.84 million shares changed hands in 35,683 deals, while market turnover stood at N27.48 billion. Trading volume declined by 67.7 per cent compared with the previous session.
Despite the broader decline, some stocks recorded notable gains. HM Call led the gainers’ chart, rising 9.97 per cent to N4.84, followed by Veritaskap, which gained 7.09 per cent to N1.36, and Tantalizer, which advanced 5.26 per cent to N4.
RT Briscoe gained 4.31 per cent to N10.90, while Regal Insurance appreciated by 3.66 per cent to N0.85.
On the losing side, Red Star Express declined by 10 per cent to N16.20, while Trans-Nationwide Express fell by 9.94 per cent to N2.81. Meyer & Baker dropped 9.88 per cent to N15.05, Chellarams declined by 9.77 per cent to N9.70, and FTG Insurance lost 9.70 per cent to N2.14.
The continued decline reflects a broader correction that began after the market’s strong rally earlier in August. The All-Share Index had climbed to 248,529.75 points on August 10, with market capitalisation moving above the N156 trillion mark.
Since then, investors have increasingly taken profits on stocks that recorded substantial gains, particularly large-cap banking counters that had attracted significant buying interest following strong corporate earnings and improved investor expectations.
However, the continued activity in selected large-cap stocks indicates that investors have not completely withdrawn from the market. MTN Nigeria, for instance, recorded transactions valued at N9.76 billion, accounting for about 35.5 per cent of total market value traded during the session.
The current market direction is likely to depend on whether profit-taking persists among heavyweight stocks. Sustained selling pressure in banking equities could continue to weigh on the benchmark index because of the sector’s significant influence on the overall market.
For investors, the latest performance highlights the volatility that can follow a strong market rally and underscores the importance of monitoring corporate earnings, valuations and broader market sentiment when making investment decisions.
Leave a comment