The Nigerian Exchange Limited (NGX) extended its losing streak to three consecutive days on Friday, with insurance firms and other companies driving a combined equity depletion of N425 billion ($290 million). The downturn, fueled by profit-taking activities, saw market-wide losses overshadow pockets of resilience in banking and hospitality sectors.
Friday’s 0.46% decline erased N425 billion from the market capitalisation, trimming it to N91.501 trillion from N91.926 trillion the previous day. The All-Share Index, a benchmark for stock performance, mirrored the drop, slipping 671.81 points to close at 144,628.20. Leading the slide were insurance heavyweights such as Lasaco Assurance and International Energy Insurance, both plummeting by the maximum allowable 10% daily limit to settle at N4.05 and N3.33 per share, respectively. Linkage Assurance, NEM Insurance, and Meyer Plc also recorded notable losses.
Investor sentiment tilted negative, with 39 stocks declining compared to 30 gainers. Analysts attributed the sell-offs to short-term traders cashing in on recent rallies, particularly in insurance stocks that had outperformed earlier in the week. However, the broader market’s dip contrasted with pockets of optimism. Mutual Benefits Assurance led gainers, surging 10% to N3.85, while Ikeja Hotel rose nearly 10% to N22.65. Banking stocks staged a partial recovery, with Wema Bank climbing 9.9% to N22.75, signaling sector-specific confidence amid broader caution.
Trading activity cooled markedly, with 1.37 billion shares worth N13.9 billion exchanging hands across 32,065 deals—a sharp decline from Thursday’s 2.46 billion shares traded at N22.22 billion. The reduced volumes suggested investors adopted a wait-and-see approach as the week concluded.
While the insurance sector bore the brunt of Friday’s losses, market observers noted the declines remained within a narrow 0.5% range, reflecting measured profit-taking rather than systemic panic. The mixed performance—showcasing both retreat in overheated segments and resilience in others—highlighted ongoing sector rotation trends. As Nigeria’s financial markets navigate global economic uncertainties and domestic policy shifts, the NGX’s three-day slide underscores the balancing act between short-term volatility and longer-term positioning in Africa’s largest economy.
