The Nigerian equities market commenced the week with a significant downturn on Monday, as investors cashed in on recent gains. Market capitalisation fell by N1.375 trillion, or 1.07 per cent, to close at N127.750 trillion, reflecting broad-based profit-taking after a strong performance earlier in the year.
The All-Share Index followed a similar trajectory, declining by 2,142.84 points, or 1.07 per cent, to settle at 199,014.02 from 201,156.86 recorded on the last trading day of the previous week. This shakeout tempered the market’s impressive Year-to-Date return, which now stands at 27.89 per cent.
Despite the aggregate loss, market breadth was positive, with 43 stocks advancing against 23 decliners. Presco led the gainers, surging 10 per cent to N1,871.20 per share. It was followed by Zochis Agro-Allied Industries (+9.91% to N9.43), John Holt (+9.70% to N13), Premier Paints (+9.62% to N25.65), and Fortis Global Insurance (+9.45% to N1.39).
The sell-off was concentrated in a handful of key stocks. Consolidated Hallmark Holdings topped the losers’ list with a 9.64 per cent drop to N4.50. Deap Capital Management fell 8.37 per cent to N5.91, while GTCO declined 8.18 per cent to N105. International Energy Insurance slipped 7.67 per cent to N2.77, and Nigerian Breweries shed 7.28 per cent to close at N70.
Trading activity showed a mixed picture. The number of deals increased to 139,458 from 58,562 on the previous session, but both value and volume contracted. A total of 848.8 million shares worth N53.3 billion were traded, compared to 6.06 billion shares valued at N130.1 billion. United Bank for Africa accounted for the highest volume, with 114.17 million shares changing hands, while MTN Nigeria dominated transaction value at N17.45 billion, representing 32.72 per cent of the day’s total.
The pullback is interpreted as a technical correction following sustained rallies that propelled the market to new highs. While the single-day loss marks a pause, the robust Year-to-Date gain and positive market breadth suggest underlying investor confidence remains intact. The session underscores the market’s sensitivity to profit-taking after sharp appreciations, a normal dynamic in a bullish trend.
