The Nigerian equities market opened the new trading month on a bearish note, shedding N1.81 trillion in investor wealth on Monday as widespread profit-taking in major blue-chip stocks dragged key market indicators lower.

The benchmark NGX All-Share Index (ASI) declined by 1.13 per cent to close at 247,560.66 points, reversing recent gains and reducing the market’s year-to-date return to 59.09 per cent. Consequently, total market capitalisation fell to N158.7 trillion from the previous session’s level.

The sharp downturn was driven primarily by heavy losses in bellwether stocks, including BUA Cement Plc, which plunged by the maximum daily limit of 10 per cent. Other major decliners included First HoldCo, down 4.3 per cent, Zenith Bank, which shed 1.7 per cent, and Oando, which fell 5.8 per cent.

Analysts attributed the selloff to sustained profit-taking by investors seeking to lock in gains following the market’s impressive rally in recent months.

Sectoral performance reflected the cautious sentiment across the market, with the Industrial Goods Index recording the steepest decline of 3.85 per cent, largely on the back of losses in BUA Cement. The Banking Index fell by 1.49 per cent, while the Oil and Gas Index dropped 0.23 per cent. The Commodity Index closed flat.

However, not all sectors ended in negative territory. The Insurance Index gained 0.79 per cent, while the Consumer Goods Index managed a marginal increase of 0.02 per cent, providing limited support against the broader market weakness.

Market breadth remained firmly negative, highlighting the extent of selling pressure. A total of 37 stocks recorded losses against 22 gainers, translating to a market breadth ratio of 0.6x.

Among the worst-performing stocks were BUA Cement, Trans-Nationwide Express, John Holt, Red Star Express and Deap Capital Management. On the gainers’ chart, International Energy Insurance, Consolidated Hallmark Holdings, Tripple Gee & Company, RT Briscoe and Ikeja Hotel posted the strongest advances.

Trading activity was mixed during the session. Total volume traded declined by 6.38 per cent to 1.13 billion shares, while the number of deals fell by 1.86 per cent to approximately 91,880 transactions. Despite the lower volume, turnover rose marginally by 1.96 per cent to N44.28 billion, indicating sustained interest in high-value counters.

ABBEY Mortgage Bank emerged as the most actively traded stock by volume, accounting for 291.16 million shares exchanged during the session. Meanwhile, Aradel Holdings dominated the value chart with transactions worth N6.31 billion.

The decline marks a cautious start to June after the market’s strong performance in the first five months of the year, during which investors benefited from robust corporate earnings, attractive dividend declarations and renewed foreign portfolio participation.

Market operators noted that while the correction may weigh on short-term sentiment, it remains consistent with normal market behaviour following an extended rally.

Analysts expect the bearish mood to persist in the near term as investors continue to rebalance portfolios and take profits in stocks that have recorded substantial gains this year. Nevertheless, they maintain that underlying market fundamentals remain positive, supported by improving corporate performance, ongoing economic reforms and expectations of stronger capital inflows into the equities market.

With profit-taking pressure still evident across key sectors, investors will be closely monitoring trading activities in the coming sessions to determine whether the market can regain momentum or extend its correction phase.

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