Profit-Taking Halts NGX Rally as Market Sheds N2.82tn in a Week

The bullish momentum at the Nigerian Exchange (NGX) came to a halt last week as investors embarked on widespread profit-taking, dragging the market’s key indicators into negative territory.

By the end of the trading week, the All-Share Index (ASI) declined by 2.99% to close at 149,524.81 points, while market capitalisation dropped by 2.89%, wiping off about N2.82 trillion to settle at N95.00 trillion.

Consequently, the year-to-date (YTD) return moderated to 45.27%, down from 49.74% recorded the previous week.

The downturn was largely attributed to selloffs in major large-cap stocks, including MTN Nigeria Communications Plc (-8.29% w/w), Aradel Holdings Plc (-8.25% w/w), and Guaranty Trust Holding Company Plc (-5.03% w/w).

The losses in these bellwethers outweighed gains seen in select heavyweights such as Okomu Oil (+2.78% w/w), Guinness Nigeria (+2.17% w/w), and Honeywell Flour Mills (+9.50% w/w).

Sectoral performance mirrored the bearish sentiment across the board. The Insurance Index led the laggards with a 7.56% weekly decline, followed by the Oil & Gas (-4.80%), Pension (-4.04%), Banking (-3.85%), NGX 30 (-3.00%), Consumer Goods (-2.54%), and Industrial Goods (-1.09%) indices.

Analysts noted that the broad-based decline reflected investors’ cautious stance as they locked in earlier gains ahead of potential market-moving disclosures.

“The market’s pullback was expected given the strong rally in prior weeks. Investors are now taking a breather to evaluate Q3 2025 corporate earnings and dividend prospects,” one market analyst observed.

Looking ahead, market watchers expect the NGX to remain subdued in the near term as participants continue to digest earnings reports and monitor macroeconomic developments.

However, the medium-term outlook remains positive, underpinned by attractive valuations, resilient corporate fundamentals, declining yields in the fixed income market, and improving investor confidence across key sectors.