The Nigerian equities market closed lower on Friday, shedding 0.56% as investor profit-taking swept through key stocks, marking a pause in recent bullish activity. The benchmark All-Share Index fell by 816 points to settle at 145,754.91, while market capitalization dipped by N516 billion ($1.13 billion*) to N92.2 trillion, erasing gains from earlier sessions.
Banking, investment, and capital management stocks drove the downturn, with Abbey Mortgage Bank leading losses at 9.87%, followed by Custodian Investment (-8.48%) and Deap Capital Management (-7.53%). Despite this, the broader market saw more advancers than decliners, with 42 stocks rising against 29 fallers. Brewing giant Champion Breweries and food producer Union Dicon Salt topped gainers, both vaulting 10%, while Guinness Nigeria and AXA Mansard Insurance neared 10% increases.
Trading activity intensified, with 2.21 billion shares exchanging hands valued at N32.4 billion ($70.9 million), a 24% rise in value from Thursday. Linkage Assurance dominated volume, trading 585.6 million shares, followed by Universal Insurance and AIICO Insurance. Analysts attributed fluctuating interests to policy shifts, as President Bola Tinubu’s recent signing of the Nigerian Insurance Industry Reform Act (NIIRA 2025) initially spurred demand for insurance stocks before momentum faded.
“Investors pivoted to insurance shares after the law’s enactment but couldn’t sustain the rally,” said David Adonri, Vice President at Highcap Securities. He noted the market had been lifted by corporate earnings reports earlier in the week but described the pullback as typical. “No sector rally lasts forever—this correction reflects normal market dynamics,” he added, downplaying concerns about prolonged volatility.
The mixed performance highlights evolving investor responses to policy reforms and earnings disclosures, with insurance firms momentarily capturing attention before profit-taking reshaped the trading landscape. As regulatory changes reshape sector prospects, market participants appear cautious about sustaining momentum in niche segments amid broader economic uncertainties.
*Currency conversion based on approximate exchange rate of N457.2/$1 as of July 2024.
