NGX Sheds N54 Billion as Bullish Streak Comes to an End

 

The Nigerian stock market took a breather on Thursday, May 29, 2025, as investors witnessed a loss of ₦54 billion, effectively halting a four-day bullish streak that had previously driven strong gains across the board. The downturn signaled a wave of profit-taking by investors eager to cash in on recent growth, leading to a modest dip in the overall market value.

At the close of trading, the All-Share Index (ASI) dropped by 84.53 points or 0.08%, closing at 111,818.08 points compared to the previous day’s 111,902.61. This brought the total market capitalization down from ₦70.564 trillion to ₦70.510 trillion. Though the dip appears marginal in terms of percentage, the value wiped off investor holdings amounted to a significant ₦54 billion.

The decline was largely driven by sell-offs in heavyweight stocks such as Seplat Energy, which saw a sharp 10% drop from ₦5,516 to ₦4,964.40. Other notable losers included Legend Internet, Abbey Mortgage Bank, Omatek, and Learn Africa, whose declines put downward pressure on the broader market.

Despite the overall loss, market breadth remained relatively positive, with 41 stocks gaining in value compared to 24 that declined. This suggests that the downturn was concentrated among select influential stocks rather than being a widespread sell-off across the board. Analysts noted that this indicates underlying strength in investor sentiment even as some sectors experienced corrections.

The sell-offs appeared to be largely a result of profit-taking, a common occurrence following a sustained period of market gains. Over the past week, investors had seen strong returns across a range of sectors, encouraging some to lock in their profits while market conditions remained favorable.

Industry watchers believe that the market’s mild pullback is not necessarily a sign of weakness but a natural recalibration following a strong rally. “After four straight sessions of gains, some cooling off is expected,” said Adaobi Chukwuma, a Lagos-based investment analyst. “What we’re seeing is not panic selling but strategic repositioning by investors who are capitalizing on recent upswings.”

Trading data showed that the financial services, energy, and consumer goods sectors were the most active during the session. While Seplat Energy led the laggards, gains in smaller and mid-cap stocks helped to cushion the index. Companies like McNichols, Eterna, Chams, and CWG recorded notable increases, with McNichols leading the gainers’ chart with a 10% jump.

Meanwhile, volume and value of trades remained robust, signaling continued investor participation despite the market dip. A total of 574.57 million shares valued at ₦8.65 billion were exchanged in 8,147 deals. This was a positive indicator of market activity and investor confidence, even as some sectors adjusted.

Investors are now closely watching how the market will perform in the coming days. Some analysts believe that the correction phase could continue briefly, especially if institutional investors proceed with further adjustments to their portfolios. However, strong corporate earnings, improving macroeconomic indicators, and high investor liquidity are expected to support the market in the medium term.

In the broader context, Nigeria’s capital market has shown resilience in recent months, driven by reforms in the foreign exchange market, renewed interest from foreign investors, and stronger performance from the banking and oil sectors. These trends are expected to keep the market attractive despite occasional dips.

Market experts are advising retail investors to focus on fundamentals and avoid making hasty decisions based on short-term fluctuations. “The key is to maintain a diversified portfolio and hold stocks with strong growth potential,” said Chukwuma. “We expect the market to remain volatile in the short term, but the long-term outlook is still positive.”

As trading resumes on the next business day, attention will shift to whether bargain hunters will return to the market in response to the dip or whether the cooling-off phase will continue. Either way, analysts remain confident that investor interest in the Nigerian stock market remains strong, and corrections like this are part of a healthy, functioning market system.

For now, the market has taken a slight pause, and all eyes are on the sectors and companies that will lead the next wave of movement—whether up or down. Investors, both institutional and retail, are watching closely, weighing their options in what remains an unpredictable but opportunity-rich environment.