NGX records first negative close this week as profit-taking moderates upside potential

Nigeria’s equities market recorded its first negative close on Wednesday, confirming analysts’ expectations of mixed trading sessions throughout the week.

Following a disappointing performance at the Nigerian Exchange Limited (NGX) last week, which saw a loss of over N500 billion, many investors took advantage of undervalued stocks, making buy decisions earlier in the week, as several counters presented re-entry opportunities.

However, the market was unable to maintain its positive momentum, closing lower by 0.10 percent or N74 billion on Wednesday.

By the close of trading, the Nigerian Exchange Limited (NGX) All-Share Index (ASI) and the equities market capitalisation had decreased from the previous day’s figures of 105,593.28 points and N66.214 trillion, respectively, to 105,475.38 points and N66.140 trillion.

Ahead of Wednesday’s session, analysts at Lagos-based Vetiva Research had anticipated continued bullish sentiment, particularly in banking stocks and select consumer goods, following strong inflows and broad-based gains across banking and insurance stocks on Tuesday. However, they also warned that profit-taking could moderate the upside potential, especially in recently rallied stocks, as investors adopted a cautious stance ahead of upcoming earnings reports from major banks.

Stocks such as Lafarge Africa, Sovereign Trust Insurance, Cutix, Fidelity Bank, and Access Holdings were actively traded, with investors executing 10,908 deals and exchanging 5,760,316,590 shares valued at N342.605 billion.

UH REIT saw the largest decline on Wednesday, falling from N56.90 to N51.25, a drop of N5.65 or 9.93 percent. This was followed by ABC Transport, which dropped from N1.53 to N1.38, losing 15 kobo or 9.80 percent. Champion Breweries also featured among the market’s major laggards, as its share price declined from N4.00 to N3.80, a loss of 20 kobo or 5 percent.

In corporate news, the Board of Directors of Eterna Plc, at a meeting held on Monday, March 24, approved the company’s Audited Financial Statements for the year ended December 31, 2024. The Board also authorised the filing of these statements with regulators and their subsequent release to the investing public. Eterna’s 2024 Audited Financial Statements are expected to be filed with the Nigerian Exchange Limited (NGX) on or before March 31, 2025.

Additionally, the Nigerian Exchange Limited and the investing public were notified that the Board of Directors of Unilever Nigeria Plc has appointed Adenike Ogunlesi as an Independent Non-Executive Director of the Board, effective from March 24, 2025.