The Nigerian equities market reversed Tuesday’s gains on Wednesday, with investors losing approximately N648 billion as renewed profit-taking across banking, consumer goods and industrial counters triggered a broad-based sell-off, outweighing targeted buying interest in selected stocks.

The benchmark NGX All-Share Index (ASI) declined 0.41% to close at 246,980.17 points, down from 247,984.55 points in the previous session, while market capitalisation contracted to N159.344 trillion from N159.992 trillion. The market’s year-to-date return moderated to 58.71%.

The decline was driven primarily by TIP and NREIT, which both posted steep losses, while renewed selloffs in Dangote Sugar Refinery, HBM Nigeria and Oando added further pressure, even as insurance stocks remained in demand among bargain hunters.

Market summary:

  • All-Share Index (ASI): 246,980.17 points, down -0.41%.
  • Market capitalization: N159.344 trillion, down -0.41%.
  • Market capitalization loss: Approximately N648 billion.
  • Year-to-date (YTD) market return: 58.71%.
  • Trading volume: 758.87 million shares, up 12.11%.
  • Market turnover (value traded): N33.79 billion.
  • Total deals: 55,251.
  • Market breadth: 23 gainers against 45 losers.

Top 5 Gainers:

  • Lasaco Assurance: up 10.00% to N2.42, from N2.20.
  • CNIF: up 9.98% to N154.30.
  • NEM Insurance: up 9.97% to N34.20.
  • SUNU Assurances Nigeria: up 9.83% to N3.91.
  • Prestige Assurance: up 7.14% to N1.50.

Top 5 Losers:

  • Cornerstone Insurance: down 10.00% to N5.40, from N6.00.
  • Legend Internet: down 10.00% to N4.05, from N4.50.
  • The Initiates: down 9.91% to N30.00.
  • Guinea Insurance: down 9.78% to N0.83.
  • ABC Transport: down 9.45% to N5.75.

Driving the numbers:

The decline was largely triggered by renewed selloffs in several bellwether stocks like TIP and NREIT which provided the strongest drag on market direction.

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  • TIP shed 9.91%, while NREIT fell 8.85% and touched a fresh 52-week low of N103.00, extending the real estate counter’s recent weakness.
  • Selling pressure also hit large-cap names, with Dangote Sugar Refinery down 4.54%, HBM Nigeria down 3.80%, and Oando down 2.44%.
  • Banking stocks were not spared either, with Wema Bank down 2.21%, GTCO down 1.91%, First HoldCo down 1.65%, Zenith Bank down 1.58%, UBA down 1.17%, and Fidelity Bank down 0.92%.

Other notable decliners included Nigerian Breweries (-0.78%) and NAHCO (-0.24%), alongside losses in 32 other stocks. Tripple Gee also slipped to a fresh low, falling from N3.36 to N3.20.

  • On the five top losers, Cornerstone Insurance led the losers chart after falling its maximum 10%, followed by Legend Internet (-10%, closing below its 52-week low), The Initiates (-9.91%), Guinea Insurance (-9.78%), and ABC Transport (-9.45%), reflecting deep profit-taking across a wide spread of counters.

Despite the broader weakness, insurance stocks bucked the trend. Lasaco Assurance topped the gainers’ chart, rising 10.00% to N2.42, while CNIF advanced 9.98% to N154.30 and NEM Insurance climbed 9.97% to N34.20. SUNU Assurances Nigeria gained 9.83% to N3.91, and Prestige Assurance rose 7.14% to N1.50.

Sector performance:

Sectoral performance was broadly negative, weighed down by the sell-off in real estate, industrial and select banking names, even as insurance counters posted strong gains that partly offset the pressure elsewhere.

  • Market breadth closed firmly negative, with 45 decliners outpacing 23 advancers, underscoring the dominant profit-taking mood among investors.
  • Major heavyweight counters, including MTN Nigeria, Dangote Cement, Seplat Energy, Custodian Investment, and Julius Berger Nigeria, closed flat, providing a buffer against a steeper market decline.
  • Trading activity strengthened despite the index’s fall, with total volume rising 12.11% to 758.87 million shares valued at N33.79 billion across 55,251 deals.
  • FCMB Group recorded the highest trading volume with 92.44 million shares, accounting for 12.18% of total volume.

First HoldCo led in traded value at N8.77 billion, representing 25.94% of the day’s turnover, while First HoldCo and Access Holdings ranked ahead in volume contribution at 9.37% and 5.70% respectively. Zenith Bank and HBM Nigeria followed First HoldCo in traded value.

What you should know:

Wednesday’s sell-off reverses the gains recorded in Tuesday’s session, with the benchmark index pulling back further from its recent highs near the 248,000-point mark.

  • With the 45-to-23 split between decliners and advancers, sentiments point to broad-based profit-taking across sectors.
  • The insurance sector’s sustained resilience, led by Lasaco Assurance, CNIF, NEM Insurance, SUNU Assurances, and Prestige Assurance, mirrors a pattern seen in recent sessions, suggesting bargain hunters continue to view the sector as undervalued even amid broader market pullbacks.
  • NREIT’s slide to a fresh 52-week low of N103.00 stands out as a key casualty of the session, alongside continued weakness in Tripple Gee, both of which have struggled to sustain earlier gains.

With trading volume and deal count both rising despite the market’s downturn, investors appear to have remained active in repositioning portfolios rather than exiting the market altogether.