Profit-taking Wipes N1.76 Trillion Off NGX as All-Share Index Drops 1.12%

The Nigerian stock market lost N1.76 trillion in market value on Wednesday, August 12, as profit-taking in large-cap stocks pushed the NGX All-Share Index down by 1.12%. The index closed at 243,967.09 points, down from 246,723.57 points in the previous session.

Data from the Nigerian Exchange Limited (NGX) showed the downturn was driven by selling pressure in selected heavyweight stocks, despite buying interest in several others. The market's year-to-date return moderated to 56.78% after the heavy losses.

Decliners and gainers

BUA Foods and Unilever Nigeria were among the biggest decliners, shedding close to 10% each in a single trading session. BUA Foods fell from N845.10 to N760.60, losing N84.50 (-10.00%). Unilever Nigeria declined from N145.95 to N131.40, shedding N14.55 (-9.97%).

Other major decliners included Access Holdings, UACN, HBMNG, Fidelity Bank, UBA, Zenith Bank, and GTCO. John Holt dropped from N10.10 to N9.10, losing N1.00 (-9.90%). AVA Capital fell from N8.95 to N8.10, down N0.85 (-9.50%). Austin Laz & Company declined from N3.18 to N2.90, losing N0.28 (-8.81%).

Despite the sell-off, market breadth stayed even with 28 gainers and 28 decliners, pointing to concentrated rather than widespread weakness. International Energy Insurance rose from N4.00 to N4.40, gaining N0.40 (+10.00%). Ecobank Transnational advanced from N64.95 to N71.40, adding N6.45 (+9.93%). Trans-Nationwide Express increased from N2.15 to N2.36, gaining N0.21 (+9.77%). Computer Warehouse Group climbed from N19.50 to N21.40, up N1.90 (+9.74%). Cornerstone Insurance rose from N5.15 to N5.50, gaining N0.35 (+6.80%).

Activity on the exchange

A total of 1.46 billion shares valued at N20.94 billion were traded in 39,085 deals. FTG Insurance led the activity chart with 853.16 million shares worth N2.58 billion. Universal Insurance traded 251.82 million shares valued at N214.10 million. Chams exchanged 40.00 million shares worth N180.97 million. First HoldCo recorded 28.28 million shares valued at N3.90 billion. Access Holdings traded 25.38 million shares worth N702.35 million.

Banking sector moves

The market update comes amid ongoing changes in the banking sector. The consolidation of Titan Trust Bank and Union Bank has reduced the number of licensed commercial banks in the country. There is also speculation that Providus Bank could acquire Unity Bank, potentially leading to another reduction in the number of commercial banks operating in Nigeria.

The Central Bank of Nigeria (CBN) is responsible for licensing, supervising, and regulating banks and other financial institutions in the country.

For Nigerian investors, the latest drop is a reminder that profit-taking can erase gains quickly, especially after a strong run. The concentration of losses in large caps suggests the broader market is still holding up for now.