Profit-taking Deepen Stock Market Losses by N2.29bn in One Week 

Kayode Tokede  

The Nigerian stock market extended losses into a second consecutive week by N2.29 billion on sustained profit-taking in  Dangote Cement Plc, BUA  Cement Plc, among other heavyweight companies listed on the Nigerian Exchange Limited (NGX).

The stock price of Dangote Cement dipped by 9.9 per cent, while BUA Cement depreciated by 10 per cent to plunged the market benchmark, NGX All-Share Index (ASI) by 0.77 per cent week-on-week (WoW) to close at 144,628.20 basis points. 

The 0.77 per cent WoW NGX ASI moderated the Month-till-Date (MtD) and Year-till-Date (YtD) returns to +0.8per cent and +37per cent, respectively.

Consequently, market capitalisation dipped by N2.29 trillion to N89.209 trillion. 

Sector performance mirrored the market’s broad gauge, following losses in the Industrial Goods (-8.4per cent), Insurance (-4.2per cent), Banking (-3.5per cent) and Oil & Gas (-0.8per cent). However, the Consumer Goods (+0.8per cent) index closed higher.

The prevailing downturn dampened investor sentiment, as reflected in a weak market breadth, with 43 gainers against 54 decliners. 

Austin Laz & Company led the gainers table by 20.83 per cent to close at N2.90, per share. NCR Nigeria followed with a gain of 20.69 per cent to close at N10.50, while Nigerian Enamelware went up by 19.45 per cent to close to N39.00, per share.

On the other side, Thomas Wyatt Nigeria led the decliners table by 18.92 per cent to close at N3.00, per share. NEM Insurance followed with a loss of 18.15 per cent to close at N26.60, while Stanbic IBTC Holdings declined by 15.39 per cent to close at N94.00, per share.

Overall, a total turnover of 4.773 billion shares worth N107.426 billion in 152,965 deals was traded last week by investors on the floor of the Exchange, in contrast to a total of 8.564 billion shares valued at N99.936 billion that exchanged hands previous week in 177,870 deals.

This week, Cowry Asset Management Limited said, “we expect the Nigerian equities market to trade mixed, with cautious sentiment dominating overall performance. Persistent pressure on Banking and Industrial Goods stocks may continue to weigh on the market, especially as investors remain wary of macroeconomic headwinds and tight liquidity. 

“However, bargain-hunting in oversold counters, particularly within the Consumer Goods sector, could trigger mild recoveries. Absent any major policy pronouncements or positive earnings releases, market activity is likely to remain subdued, with the NGX All-Share Index projected to move within a narrow band.”  

United Capital Plc noted that “we have positive expectations that the financial services sector (banking, insurance and other non-banking) may remain the toast of investors. Expectations of strong earnings from the manufacturing sector may continue to drive positive sentiment in the broader market.”

Afrinvest Limited stated that “this week, we expect a mixed performance with a bearish tilt as investors continue to reassess portfolio positioning amid H1:2025 interim dividend declarations, sustained pressure on blue-chip stocks, and the absence of strong positive catalysts.”

In the near term, analysts at Cordros Research said, “we expect profit-taking to persist, while selective buy interest is likely to emerge in fundamentally sound equities. 

“Over the medium term, sentiment will likely be shaped by macroeconomic developments — including growth, inflation, and policy direction — as well as movements in fixed income yields, which could further influence asset (re)allocation decisions between equities and debt instruments.”