Nigeria’s equities market extended its losing streak on Tuesday as renewed profit-taking in heavyweight stocks, particularly First HoldCo and Fidelity Bank, pushed the benchmark index lower despite strong investor interest in MTN Nigeria.
The NGX All-Share Index (ASI) declined by 0.35 per cent to close at 241,611.23 points, extending the market’s bearish run to six consecutive sessions.
Market capitalisation also fell by approximately N544.5 billion, declining from N156.52 trillion to N155.97 trillion, while the market’s year-to-date return moderated to 55.26 per cent.
The latest decline represents a continued correction from the market’s recent rally, with investors increasingly locking in profits from stocks that recorded substantial gains earlier in the year.
MTN Nigeria Dominates Market Value
Despite the broader market weakness, MTN Nigeria emerged as the most valuable stock traded during Tuesday’s session.
Transactions in the telecommunications giant were valued at N9.76 billion, accounting for approximately 35.50 per cent of total market value traded during the session.
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The strong value turnover in MTN Nigeria indicates continued investor activity around the telecommunications heavyweight even as the wider market remained under pressure.
Sterling Financial Holdings led the volume chart, with 51.57 million shares changing hands.
Overall trading activity, however, weakened considerably. Total volume fell by 67.69 per cent to 429.84 million shares, while market turnover stood at N27.48 billion across 35,683 deals.
First HoldCo, Fidelity Bank Lead Heavyweight Sell-Off
First HoldCo was among the major contributors to Tuesday’s decline, falling 5.71 per cent from N140 to N132 per share, representing an N8 loss per share.
Fidelity Bank recorded an even sharper decline, dropping 6.59 per cent, making it the biggest large-cap decliner of the session.
NGX Group also declined by 3.83 per cent, adding to the pressure on the benchmark index.
Other heavyweight stocks that recorded losses included Unilever Nigeria, down 3.64 per cent; Dangote Sugar, down 1.57 per cent; GTCO, down 0.39 per cent; UBA, down 0.33 per cent; Oando, down 0.28 per cent; and Zenith Bank, down 0.16 per cent.
The concentration of losses among large-cap financial and consumer stocks reinforced concerns that investors are continuing to realise gains after the market’s earlier surge.
37 Stocks Decline
Market breadth remained firmly negative, with 22 stocks recording gains compared with 37 decliners.
HM Call topped the gainers’ table, advancing 9.97 per cent to N4.84. Veritaskap followed with a 7.09 percent gain to N1.36, while Tantalizer rose 5.26 per cent to N4.00.
RT Briscoe gained 4.31 per cent to N10.90, while Regal Insurance appreciated 3.66 per cent to N0.85.
On the losing side, Red Star Express suffered the steepest decline, falling 10 per cent to N16.20.
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Trans-Nationwide Express followed with a 9.94 per cent decline to N2.81, while Meyer & Baker fell 9.88 per cent to N15.05. Chellarams declined 9.77 per cent to N9.70, while FTG Insurance dropped 9.70 per cent to N2.14.
Banking Stocks Remain Under Pressure
Sectoral performance was predominantly negative, led by continued weakness in banking stocks.
The NGX Banking Index declined 1.82 per cent, reflecting significant losses in Fidelity Bank, First HoldCo and other major financial stocks.
The Consumer Goods Index also slipped, although marginally, by 0.03 per cent.
The Oil & Gas Index fell by 0.01 per cent, while the Insurance Index recorded a marginal 0.04 per cent gain.
The Industrial Goods and Commodity indices closed flat.
The sectoral performance suggests that Tuesday’s sell-off was concentrated largely in financial stocks, with selected heavyweight consumer and industrial names also contributing to the market’s decline.
Market Correction Deepens
The latest loss extends the NGX’s correction from its recent peak.
The All-Share Index had climbed to 248,529.75 points on August 10, following an impressive rally that pushed market capitalisation above the N156 trillion threshold.
Since then, the benchmark has surrendered more than 6,900 points, while market capitalisation has slipped below N156 trillion.
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The six-session losing streak suggests that investors remain firmly focused on profit-taking, particularly in stocks that have delivered strong returns during the year.
However, the continued high-value activity in MTN Nigeria indicates that institutional and portfolio investors remain active in selected large-cap counters despite the broader sell-off.
What Investors Are Watching
The immediate direction of the Nigerian equities market is likely to depend on whether the current wave of profit-taking in heavyweight stocks continues.
Persistent selling pressure in major banking stocks could keep the ASI under pressure, particularly given the substantial weighting of financial companies in the Nigerian market.
On the other hand, a return of bargain hunting in fundamentally strong large-cap stocks could provide support for the index and potentially halt the current six-session decline.