The Nigerian stock market suffered a sharp downturn on Thursday, wiping out approximately ₦3.6 trillion in investor value as profit-taking activities in major blue-chip stocks, particularly BUA Cement, triggered widespread declines across the market.
The bearish sentiment ended a two-day winning streak on the Nigerian Exchange (NGX), with the benchmark All-Share Index (ASI) falling by 5,668.65 points, or 2.35 per cent, to close at 235,074.54 points.
The decline also weakened the market’s broader performance indicators, pushing the month-to-date return to -6.1 per cent, while the year-to-date gain moderated to 51.1 per cent.
Selling pressure was evident across all major sectors, reflecting cautious investor sentiment. The Industrial Goods Index recorded the steepest decline, dropping 8.3 per cent, followed by losses in the Insurance, Banking, Consumer Goods, and Oil and Gas sectors.
Market breadth remained firmly negative, with 38 stocks recording losses compared to 17 gainers.
Among the session’s top performers, Skyway Aviation Handling Company led the gainers’ table after its share price rose by 9.92 per cent to close at N171.20. International Energy Insurance advanced by 9.66 per cent to N6.70, while Tantalizers gained 6.98 per cent to settle at N4.60 per share.
Other notable gainers included Omatek Ventures, which appreciated by 5.70 per cent, and AIICO Insurance, which climbed 5.19 per cent.
On the downside, major market heavyweights bore the brunt of the sell-off. Dangote Cement, BUA Cement, and Geregu Power each declined by the maximum daily limit of 10 per cent, closing at N963.00, N340.20, and N917.40 respectively. Custodian Investment and Academy Press also posted significant losses as investors continued to lock in profits from recent gains.
Trading activity slowed during the session, with total transaction volume falling by 10.1 per cent to 488.04 million shares valued at N20.92 billion across 46,161 deals.
First Holdco emerged as the most actively traded stock by value and volume, accounting for 57.39 million shares worth over N3.5 billion. Chams Holding Company, Access Holdings, Linkage Assurance, and Sterling Financial Holdings also featured prominently among the day’s most traded equities.
Market analysts attributed the decline to widespread profit-taking and a more cautious investment approach following recent market gains. According to APT Funds & Securities Limited, investors reduced exposure to equities amid a broad market correction and weaker trading momentum.
Despite the sharp decline, analysts at Cowry Assets Management expressed optimism that the market could regain positive momentum in the coming sessions as investors reposition into fundamentally strong stocks. However, they noted that continued profit-taking in recently appreciated counters may limit the pace of recovery.
The latest pullback highlights the volatility currently shaping the Nigerian equities market, where investors are balancing strong year-to-date returns against concerns over valuations and short-term market corrections.
