Stock market drops for fifth straight session
The equities market opened the week on a negative note as indices dipped by 0.07% due to profit-taking in medium and large-capitalised stocks, marking the fifth consecutive session of bearish rally.
The equities market opened the week on a negative note on Monday as indices dipped by 0.07 per cent due to profit-taking in medium and large-capitalised stocks. This marked the 5th consecutive session of bearish rally. Market capitalisation fell by ₦107 billion, or 0.07 per cent, closing at ₦156,517 trillion, compared with ₦156,623 trillion recorded on Friday. Also, the All-Share Index lost by 164.55 points, or 0.07 per cent, settling at 242,454.65.
As a result, the year-to-date return declined to 55.81 per cent as the market breadth closed negative, with 36 losers against 19 gainers. RT Briscoe led the losers’ table by 9.91 per cent, settling at ₦10.45, Fortis Global Insurance trailed by 9.89 per cent, finishing at ₦2.37 while Mc Nicholas dropped by 9.62 per cent, ending the session at ₦4.70 per share.
Conversely, Trans-Nationwide Express led the gainers’ table by 9.86 per cent, ending the session at ₦3.12, AVA Capital followed by 9.72 per cent, closing at ₦7.90 while Thomas Wyatt Nigeria climbed by 9.09 per cent, settling at ₦3 per share. Market activity weakened during the session, with total volume of trades declining by 5.89 per cent to 1.33 billion shares, valued at ₦22.93 billion, exchanged in 45,494 transactions.
The five-day losing streak suggests that investors are taking profits after a sustained rally. The market’s year-to-date return of 55.81 per cent remains impressive, but the correction could deepen if profit-taking continues. The sell-off in medium and large-cap stocks is a reminder that markets do not move in one direction.
This echoes the 2021 market corrections, which also saw profit-taking after a sustained rally. The mechanism then was different, but the result was the same: a reminder that markets are volatile.
The winners: investors who sold before the correction, locking in profits; and the Nigerian Exchange, which remains active. The losers: investors who bought at the peak; and the Nigerian economy, which relies on a stable capital market.
Bottom Line: The stock market has dropped for five consecutive sessions. Investors are taking profits after a strong rally. The question is whether the correction will deepen or reverse.