Bears Tighten Grip On NGX As Market Cap Falls To N159.3trn
The Nigerian Exchange (NGX) experienced a downturn as profit-taking led to a significant decline in market capitalization. Despite the negative performance, some analysts remain optimistic about the market's long-term resilience.
Why it matters
Market volatility in the NGX reflects broader investor sentiment and economic health within the Nigerian financial sector.
Bearish sentiment returned to the Nigerian Exchange (NGX) on Wednesday as sustained profit-taking in major stocks erased N648 billion from investors’ wealth, dragging the market capitalisation down to N159.345 trillion.
The downturn wiped out the previous session’s gains, with the All-Share Index (ASI) shedding 1,004.38 points, or 0.41 per cent, to close at 246,980.17 points, while market capitalisation declined from N159.993 trillion to N159.345 trillion.
The sell-off was driven largely by losses in heavyweight and medium-cap stocks, including HBM Nigeria Plc, Dangote Sugar Refinery, The Initiates Plc (TIP), Guaranty Trust Holding Company (GTCO) and Zenith Bank.
Despite the negative close, analysts at Cowry Assets Management Limited said the market could rebound in subsequent sessions, noting that relatively modest declines across most sectors suggest improving resilience.
However, they warned that continued profit-taking in recently appreciated stocks may limit the pace of recovery.
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