NGX benchmark ASI retracts to 201,156.85 as pre-holiday sell-off erases gains

The Nigerian stock market retreated into bearish territory on Wednesday as investors aggressively offloaded positions across major sectors ahead of the scheduled Eid-el-Fitr public holiday.

The downturn effectively eroded gains recorded in previous sessions, as selling pressure on high-cap and mid-cap stocks dampened market sentiment.

The benchmark All-Share Index (ASI) fell by 0.69 percent to close at 201,156.85 points, down from Tuesday’s 201,474.89 points.

This slide reflects a broader cooling of investor confidence, bringing the Year-to-Date (YTD) return to 29.27 percent. Correspondingly, the total market capitalization of listed equities contracted to N129.13 trillion.

Market breadth settled in the negative zone, with 38 decliners outweighing 31 gainers. REDSTAREX led the losers’ chart with a sharp 9.98 percent drop, followed closely by energy giant ARADEL, which shed 9.68 percent.

Other notable laggards included PRESCO (-9.30%), GTCO (-7.41%), and NGXGROUP (-4.47%). Tier-1 banking stocks such as UBA, ACCESSCORP, and ZENITHBANK also closed in the red, contributing to the overall market pull-back.

Conversely, NSLTECH emerged as the top gainer, while GUINNESS and JOHNHOLT defied the bearish trend to trade above their 52-week highs at N423.20 and N11.85, respectively.

Despite the decline in prices, trading activity surged remarkably. Total volume traded spiked by 246 percent to 6.06 billion units, valued at N130.06 billion across 58,562 deals.

This surge in volume was largely driven by ETRANZACT, which accounted for a staggering 85.31 percent of the day’s total volume with 5.15 billion units traded.

In terms of value, DANGCEM maintained its dominance, contributing N56.48 billion, or 43.42 percent of the day’s total turnover.

Analysts suggest that the mid-week sell-off was fueled by investors seeking to liquidate assets for liquidity ahead of the festive break, coupled with a cautious outlook on the macroeconomic environment. The market is expected to remain quiet as the holiday commences, with participants looking for fresh catalysts upon the resumption of trading.