Nigeria’s equities market closed in the red on Tuesday as investors lost N285 billion following sustained sell-offs in banking, consumer goods and oil & gas stocks.
Despite buy-side interest in insurance stocks, bearish sentiment prevailed and dragged the market lower by 0.43 percent.
At the close of trading, the Nigerian Exchange Limited (NGX) All-Share Index (ASI) fell from 106,621.91 points to 106,167.75 points while the market capitalization declined from N66.769 trillion to N66.484 trillion.
The decline further trimmed the market’s year-to-date return to 3.15 percent to reflect the impact of sectoral weakness and profit-taking by investors.
Heavyweight banking stocks, including Fidelity Bank, Access Holdings, GTCO, and Zenith Bank alongside consumer goods and oil & gas equities, were among the major drags on the market.
While insurance stocks attracted buying interest, it was not enough to offset the broader market losses.
The market recorded 12,652 deals with investors exchanging 324,588,603 shares valued at N7.918 billion.
Among the worst-performing stocks, Mecure led the losers’ chart, shedding 10 percent from N12.50 to N11.25 while ABC Transport declined by 7.98 percent, dropping from N1.63 to N1.50.
The downturn comes amid renewed profit-taking activities in key market segments, following a period of sustained gains. Analysts note that concerns over macroeconomic stability, rising interest rates, and currency volatility have contributed to cautious trading behavior among investors.
The decline in banking, consumer goods, and oil & gas stocks suggests that investors are reevaluating positions amid shifting market dynamics. The oil and gas sector has faced pressure due to global price fluctuations and domestic policy concerns.
Despite the bearish session, analysts believe that market fundamentals remain strong, with pockets of opportunity in sectors showing resilience. Insurance stocks have continued to attract interest, while long-term investors may see the pullback as an entry opportunity in select blue-chip equities.
As the market navigates external and internal economic factors, investors will be watching closely for corporate earnings releases, policy signals from the Central Bank, and global economic trends that could influence near-term sentiment.
With the market losing N285 billion in a single session, traders remain cautious, while institutional investors assess strategies to mitigate risk and capitalize on emerging opportunities.
