Profit-taking drags NGX lower, market cap sheds N725bn

The Nigerian Exchange Limited retreated into negative territory on Tuesday, as profit-taking in blue-chip equities erased gains from the Monday trading session.

Investors adopted a cautious stance, opting to lock in profits after a sustained market rally.

The benchmark All-Share Index declined by 1,130.87 points, closing at 196,066.11 points, down from Monday’s close of 197,196.98 points.

This pullback reduced the total market capitalisation by approximately N725.94bn, bringing it to N125.86tn from N126.58tn earlier.

The bearish sentiment was broad-based, affecting most key sectors as investors trimmed positions in large-cap stocks. Financial services faced mild selling pressure, with the NGX Banking Index dipping to 1,868.87 points.

Blue-chip stocks were also hit, as the NGX 30 Index and the NGX Premium Index both slipped, reflecting significant profit-taking in high-value counters.

Similarly, manufacturing and consumer goods stocks saw downward adjustments, with the NGX Industrial Index and the NGX Consumer Goods Index recording modest declines. In contrast, the oil and gas sector remained relatively stable despite the broader market decline, with the NGX Oil and Gas Index recording only a marginal dip, closing at 4,522.52 points.

The insurance sector bucked the trend entirely, posting a modest gain as bargain hunters moved in to capitalise on recent price corrections in select insurance counters, lifting the index to 1,294.29 points.

Market analysts suggest that Tuesday’s performance reflects a period of consolidation. After hitting record highs earlier in the week, investors are rebalancing their portfolios, prioritising stocks with strong corporate governance and steady dividend yields.

While the broad-based sell-off signalled caution, the sustained trading volume suggests that liquidity remains firm, with investors selectively repositioning ahead of upcoming earnings reports.

Trading activity remained strong, as investors navigated market dynamics amid fluctuating sentiment.

Source: https://punchng.com/profit-taking-drags-ngx-lower-market-cap-sheds-n725bn/