NGX sheds N1.32 trillion as profit-taking hits industrial, bank stocks
The Nigerian Exchange Group lost N1.32 trillion in market capitalization as investors took profits in industrial and banking heavyweights, though surging trading volumes indicate active portfolio rebalancing rather than a broad exit.
The Nigerian equities market lost N1.32 trillion in market capitalization on Monday as broad profit-taking swept through industrial and banking stocks. The NGX All-Share Index fell 0.84% to close at 241,749.11 points, trimming the market’s year-to-date return to 55.35%.
The sell-off was concentrated in heavy industrials and lenders, sectors that have driven much of the market's recent rally. The industrial goods index fell 3.28%, while the banking index dropped 1.44%. Insurance stocks also retreated, down 2.18%. Analysts attribute the weakness to portfolio rebalancing rather than any fundamental deterioration in the financial sector's outlook.
BUA Cement led the decline among major names, shedding 9.99% to close at N306.20. Consumer goods companies faced heavy selling, with PZ Cussons dropping 10% to N81.00, while Cadbury Nigeria and NASCON lost 8.95% and 8.91% respectively. In the banking sector, FCMB Group fell 6.48% to N10.10, First HoldCo dropped 5.20% to N65.60, and Zenith Bank declined 3.25% to N107.20.
Despite the widespread price declines, trading activity accelerated significantly. Total volume rose 18.66% to 523.54 million shares, and deal count jumped 33.39% to 59,945 transactions. The value of traded equities reached N22.28 billion, a 14.81% increase. FCMB accounted for 19.53% of the day's volume, while SEPLAT led by value with N3.62 billion in trades.
Market breadth was firmly negative, with 46 stocks declining against 19 advancers. The consumer goods sector was the lone bright spot, posting a 0.59% gain. Select names still pushed to new 52-week highs, with the Nigeria Infrastructure Debt Fund surging 9.97% to N163.30 and FTN Cocoa touching N3.00. Analysts expect the market to stabilize as strategic repositioning continues, though further profit-taking in top-performing counters may limit any immediate rebound.
