Investors lose N1.81tn as profit-taking triggers Stock Market sell-off

By Taiye Olayemi

Investors on the Nigerian Exchange Limited (NGX) lost a staggering N1.81 trillion on Monday as widespread profit-taking in blue-chip and mid-cap stocks triggered a sharp market downturn, wiping out gains accumulated in recent sessions.

The bearish performance came on the first trading day of June and coincided with the commencement of the newly introduced T+1 settlement cycle, a major reform aimed at improving efficiency, liquidity and competitiveness in Nigeria’s capital market.

At the close of trading, market capitalisation declined by N1.811 trillion, falling from N160.508 trillion recorded on Friday to N158.697 trillion.

Similarly, the benchmark All-Share Index shed 2,824.81 points, representing a 1.13 per cent decline, to close at 247,560.66 compared to 250,385.47 in the previous session.

The sell-off weakened the market’s year-to-date return to 59.09 per cent, reflecting the impact of intense profit-booking by investors seeking to cash in on recent price rallies.

Market analysts attributed the downturn largely to heavy selling pressure in major stocks, particularly BUA Cement, Trans-Nationwide Express, John Holt, Red Star Express and Deap Capital Management.

BUA Cement emerged as the biggest drag on the market, losing 10 per cent to close at N378 per share. Trans-Nationwide Express fell by 9.85 per cent to N4.76, while John Holt dropped 9.73 per cent to N15.30.

Red Star Express declined by 9.71 per cent to N30.70, while Deap Capital Management shed 9.15 per cent to close at N5.16 per share.

The market breadth remained negative as 37 stocks recorded losses, compared with 24 gainers, underscoring weak investor sentiment across sectors.

Despite the broad-based decline, some stocks posted impressive gains. International Energy Insurance led the gainers’ table with a 9.96 per cent appreciation to N4.97 per share. Consolidated Hallmark advanced by 9.92 per cent to N6.87, while The Initiates Plc gained 9.86 per cent to close at N31.20.

RT Briscoe rose by 9.16 per cent to N14.90, while Ikeja Hotel appreciated by 8.71 per cent to N43.70 per share.

Trading activity also weakened during the session, with total volume traded dropping 6.38 per cent to 1.13 billion shares worth N44.28 billion exchanged in 91,880 deals.

Abbey Mortgage Bank dominated the volume chart with 291.16 million shares traded, accounting for 25.82 per cent of total market volume, while Aradel topped the value chart with transactions worth N6.31 billion, representing 14.26 per cent of the day’s turnover.

The sharp decline highlights growing profit-taking pressure in the equities market despite ongoing reforms designed to strengthen trading efficiency and deepen investor participation.