The Nigerian Exchange Limited (NGX) halted a four-session rally on Tuesday, shedding N1.166 trillion in market capitalisation as sustained sell-offs in major stocks erased recent gains. The downturn interrupted a consistent bullish streak that had driven the benchmark index to fresh highs, underscoring the market’s sensitivity to profit-taking in heavyweight counters.
Market capitalisation contracted by 0.73 per cent to close at N159.255 trillion, down from N160.421 trillion recorded in the previous session. The All-Share Index (ASI) mirrored the decline, losing 1,806.18 basis points to settle at 246,723.57. Consequently, the market’s year-to-date return moderated to 58.55 per cent, despite a marginally positive market breadth that showed 28 gainers against 27 losers.
The decline was largely driven by price depreciation in key sectors. Thomas Wyatt Nigeria topped the losers’ chart, plummeting 9.97 per cent to close at N2.89. AVA Capital followed with a 9.60 per cent drop to N8.95, while International Energy Insurance lost 6.32 per cent to N4.00. International Breweries shed 5.98 per cent to close at N11.00, and Guinea Insurance declined 5.13 per cent to 74 kobo. The selling pressure in these counters outweighed advances elsewhere, dragging the broader index lower.
On the gainers’ side, UPDCREIT led advancers with a 10 per cent jump to N14.85. FTN Cocoa Processors rose 9.88 per cent to N8.90, while C&I Leasing appreciated 8.26 per cent to N5.90. Sovereign Trust Insurance and Regency Alliance Insurance rounded out the top five, gaining 6.74 per cent to N1.90 and 6.33 per cent to 84 kobo respectively. The mixed performance highlighted a rotational trading pattern where investors cherry-picked low-cap stocks while exiting positions in more liquid names.
Trading activity surged significantly, with volume spiking to 3.909 billion shares valued at N32.38 billion exchanged in 45,608 deals. This represented a sharp increase from the 1.137 billion shares worth N27.02 billion Traded in 59,185 deals on Monday. The extraordinary volume was almost entirely driven by Fortis Global Insurance, which accounted for 3.29 billion shares valued at N9.58 billion. The single counter represented 84.22 per cent of total market volume and 29.57 per cent of total value, indicating a block trade or strategic repositioning that distorted the broader activity metrics.
The session’s outcome reflects a market pausing for breath after a sustained upward trajectory. While the positive breadth suggests underlying support across a wide range of securities, the outsized influence of a few large-cap decliners and the concentration of volume in a single insurance stock point to fragile sentiment. Market participants will likely monitor whether the pullback triggers a broader correction or if bargain hunters step in to resume the bullish momentum in subsequent sessions.
