Investor sentiment on the Nigerian Exchange (NGX) remained firmly bearish on Thursday as widespread profit-taking and risk-off trading triggered another sharp decline in equities, wiping out approximately N2.18 trillion from market capitalisation in a single trading session.

The benchmark All-Share Index (ASI) shed 3,397.80 basis points to close at 237,404.92 points, down from the previous day’s 240,802.72 points, representing a decline of 1.27 per cent. The latest downturn further underscores growing caution among investors amid sustained market volatility and a wave of selloffs across key sectors of the market.

As a result of the broad-based decline, the total value of listed equities dropped to N152.27 trillion from N154.45 trillion, extending the market’s recent bearish run and highlighting the scale of value erosion confronting investors.

Market analysts attributed the decline largely to continued profit-taking in stocks that had recorded significant gains earlier in the year, as investors moved to lock in profits amid uncertainty surrounding macroeconomic conditions and near-term market direction.

The negative performance came despite a notable increase in trading activity, suggesting that investors remained active but were largely positioned on the sell side.

Data from the trading session showed that total volume traded rose by 4.3 per cent to 691.64 million shares, compared with 662.96 million shares exchanged in the previous session. More striking was the surge in transaction value, which jumped by an impressive 192.3 per cent to ₦116.85 billion from ₦39.98 billion.

The sharp rise in turnover value indicates the execution of several large-ticket transactions during the day, reflecting heightened institutional participation even as overall market sentiment remained weak.

However, the number of deals recorded on the Exchange declined marginally. Total transactions fell by 2.2 per cent to 50,025 deals from 51,143 recorded previously, suggesting that while fewer trades were executed, larger-value transactions dominated market activity.

Market watchers noted that the divergence between rising turnover and falling prices signals a market where investors are actively repositioning portfolios rather than exiting equities entirely. Nevertheless, the dominance of sellers over buyers reinforced bearish momentum and exerted downward pressure on stock valuations.

The latest decline adds to concerns that the market may be entering a prolonged consolidation phase following the strong rally witnessed earlier in the year. Although the NGX remains one of Africa’s best-performing exchanges in terms of year-to-date returns, recent sessions have seen investors increasingly adopt defensive strategies amid concerns over inflationary pressures, interest-rate expectations and foreign exchange uncertainties.

The bearish sentiment was evident across most sectors of the market, with declining stocks outweighing gainers and dragging the broader market lower. The sustained sell pressure reflects a cautious investment climate as market participants await fresh corporate earnings releases and economic indicators that could provide clearer direction for equities.

Looking ahead, market operators expect volatility to persist in the near term as investors continue to assess valuation levels and the broader economic outlook. However, analysts maintain that opportunities remain for long-term investors willing to take advantage of price corrections in fundamentally sound companies.

For now, the market’s immediate trajectory appears tilted to the downside, with the latest N2.18 trillion loss serving as another reminder of the fragile sentiment currently shaping trading on the Nigerian Exchange.

The combination of heavy selloffs, declining share prices and rising transaction values paints a picture of a market undergoing significant repositioning, as investors balance profit-taking opportunities against concerns about the economic and corporate earnings landscape in the months ahead.

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