Equities shed N800bn as profit-taking halts market rally

n n

The recent bullish momentum on the Nigerian Exchange Limited came to a sudden halt on Wednesday as aggressive profit-taking in high-capitalisation stocks wiped N800bn off the total market valuation.

n

The All-Share Index fell by 1,241.19 points, representing a 0.50 per cent decline, to close at 245,418.37 basis points. Consequently, market capitalisation dropped to N158.319tn.

n

The market’s downturn was primarily triggered by price depreciation in key consumer goods and industrial heavyweights, notably Nestle Nigeria, BUA Foods, UACN, Guinness Nigeria, and MeCure Industries.

n

Despite the broader market contraction, investor sentiment remained resilient, reflected in a positive market breadth as 37 gainers outpaced 27 decliners.

n

Commenting on the day’s trend, market analysts noted that the heavy concentration of trading activity, where over two-thirds of total market value was locked in First Holdco, underscored strong institutional participation on the trading floor.

n

Furthermore, sustained buying interest in tier-one banking stocks indicated an ongoing appetite for financial sector equities despite general profit-taking across other sectors.

n

On the performance chart, Cadbury Nigeria, Trans-Nationwide Express, and Unilever Nigeria led the gainers, each advancing by the maximum daily limit of 10 per cent to close at N62.70, N3.08, and N137.50 per share, respectively.

n

They were closely followed by Thomas Wyatt Nigeria, which rose 9.95 per cent to N4.09, and NASCON Allied Industries, which climbed 8.89 per cent to close at N196 per share.

n

Conversely, Nestle Nigeria and BUA Foods topped the decliners’ table, shedding 10 per cent each to settle at N2,812.50 and N845.10 per share.

n

MeCure Industries dropped 9.94 per cent to N69.30, International Energy Insurance dipped 9.84 per cent to N4.40, while UACN slipped 7.75 per cent to N184.45 per share.

n

Activity levels spiked significantly as total volume traded jumped 34.34 per cent to 1.253 billion units, valued at N118.179bn, executed in 47,458 deals.

n

First Holdco dominated the activity chart by a massive margin, recording 736.038 million shares exchanged for N80.812bn. Access Holdings followed with 79.580 million shares worth N2.094bn, while Guaranty Trust Holding Company traded 34.044 million shares valued at N4.419bn.

n

Mutual Benefits Assurance and Zenith Bank rounded off the top five most active counters, trading 24.361 million shares (N85.326m) and 21.455 million shares (N2.575bn), respectively.

n n