NGX loses N648bn as renewed profit-taking hits equities

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The Nigerian stock market reversed Tuesday’s gains on Wednesday as renewed profit-taking across major counters triggered a broad-based sell-off. Investors lost approximately N648bn in wealth as declining equities almost doubled those that recorded price appreciation.

Market indices fall

The Nigerian Exchange All-Share Index dropped 0.41 per cent, falling from an opening level of 247,984.55 basis points to settle at 246,980.17 basis points. Total market capitalisation contracted from N159.992tn at the start of the session to close at N159.344tn. Market breadth closed negative with 45 equities recording price declines against 23 gainers, underscoring the dominant profit-taking mood among investors.

Biggest losers and gainers

The downturn was led by Cornerstone Insurance Plc, which shed 10.00 per cent to drop from N6.00 to N5.40, and Legend Internet Plc, which also fell 10.00 per cent to close at N4.05 from N4.50. Other significant decliners included The Initiates Plc, which lost 9.91 per cent to land at N30.00; Guinea Insurance Plc, easing 9.78 per cent to N0.83; and ABC Transport Plc, which slipped 9.45 per cent to end the day at N5.75.

Despite the overarching bearish sentiment, insurance stocks remained in noticeable demand among bargain hunters. Lasaco Assurance Plc led the gainers’ chart, appreciating 10.00 per cent to move from N2.20 to N2.42. CNIF advanced 9.98 per cent to close at N154.30, while NEM Insurance Plc climbed 9.97 per cent to finish at N34.20. SUNU Assurances Nigeria Plc gained 9.83 per cent to settle at N3.91, and Prestige Assurance Plc rose 7.14 per cent to close at N1.50.

Heavyweights hold steady

Major heavyweight counters provided a buffer against further market decline by remaining unchanged for the session. MTN Nigeria Communications Plc, Dangote Cement Plc, Seplat Energy Plc, Custodian Investment Plc, and Julius Berger Nigeria Plc were among the prominent stocks that closed flat.

Market watchers expect trading to remain mixed in the near term as investors weigh profit-taking against bargain-hunting opportunities ahead of upcoming corporate earnings releases. For the naira and Nigerian businesses, a sustained equity sell-off could signal reduced foreign portfolio inflows and weaker investor confidence, but the flat close of blue-chip stocks suggests underlying resilience in the market’s largest names.

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