The bearish sentiment in the Nigerian equities market intensified on Wednesday as the NGX All-Share Index (ASI) fell by 0.23 percent to close at 144,646.01 basis points, reflecting sustained sell pressure driven by year-end profit-taking and portfolio rebalancing by institutional investors.

The downturn at the Nigerian Exchange (NGX) wiped off N216.58 billion from the market’s total capitalisation, dragging it down to N92 trillion.

Market breadth remained firmly negative, underscoring fragile investor confidence, with 39 decliners outweighing 16 advancers.

Among the top performers, NCR, Caverton Offshore Support Group, UACN, Mutual Benefits Assurance, and Linkage Assurance recorded modest gains despite the market-wide selloffs.

On the flip side, Universal Insurance, Associated Bus Company, LivingTrust Mortgage Bank, Chellarams, and Royal were the worst hit, posting significant losses as investors rotated out of riskier counters.

Sectoral performance mirrored the broader downturn, with four of the six tracked indices closing in the red. The Insurance sector led the slide with a 1.35 percent decline, followed by Banking, Oil & Gas, Commodity, and the Industrial Goods Index. The Consumer Goods sector was the only bright spot, posting a marginal gain of 0.09 percent, supported by selective bargain-hunting in tier-one consumer stocks.

Activity levels on the bourse reflected a mixed trading pattern. Total volume traded rose by 34.12 percent to 892.54 million shares, while market value increased by 40.83 percent to N23.54 billion, signalling heightened institutional participation through large block transactions.

However, the total number of deals dipped by 7.34 percent to 20,225, indicating that retail investors largely stayed on the sidelines, maintaining a risk-off posture amid macroeconomic uncertainties and tighter liquidity conditions.

Analysts note that the persistent sell pressure is typical of the final trading weeks of the year, as fund managers rebalance portfolios, lock in profits, and reposition ahead of 2026 market guidance and potential policy catalysts. While short-term volatility is expected to remain elevated, market watchers anticipate a possible rebound in early January as fresh inflows come in.

For now, the Nigerian equities market continues to navigate a challenging environment, with investor sentiment subdued and market direction heavily influenced by institutional flows.

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