The Nigerian Exchange (NGX) opened July on a bearish note as widespread selloffs in Dangote Cement, Aradel Holdings, and other large-cap stocks erased ₦2.39 trillion from investors’ wealth, reversing the previous session’s modest recovery.
Market data showed that the NGX All-Share Index (ASI) shed 3,729.11 basis points, or 1.63%, to close at 225,690.07.
Total market capitalisation declined by ₦2.39 trillion to ₦144.82 trillion.
The Oil & Gas and Industrial Goods sectors recorded the steepest declines, falling 4.41% and 3.65%, respectively.
Major decliners included Aradel Holdings (-10%), Dangote Cement (-7.48%), Zenith Bank (-4.50%), and GTCO (-2.40%).
A handful of stocks bucked the trend, including Austin Laz, Guinea Insurance, Abbey Mortgage Bank, DAAR Communications, Regal Insurance, and Sovereign Trust Insurance.
Total transaction volume declined by 49.50%.
The value of trades fell 65.09% to approximately ₦13.96 billion, with 488.12 million shares exchanged in 46,929 deals.
Market breadth remained negative, with 31 decliners outweighing 19 gainers.
Atlass Portfolio Limited attributed the market’s decline to “fresh profit-taking in medium- and large-cap stocks following the strong rally recorded during the first half of the year”.
Independent market analysts suggest investors are increasingly rotating profits into defensive positions while awaiting second-quarter corporate earnings and further policy signals.
Expectedly, investors will closely monitor the release of second-quarter and half-year corporate earnings.
Analysts expect profit-taking to persist in heavily appreciated stocks, while bargain hunters may return to fundamentally strong counters.
Market participants will also watch upcoming macroeconomic data and monetary policy developments.