Profit-taking pressures Nigerian stocks

By Philippine Duru

philippineobetoduru@gmail.com

08034905774

The Nigerian stock market began the week on a bearish note as investors lost approximately N1.32 trillion in market value following widespread profit-taking ahead of the release of half-year corporate earnings by listed companies.

At the close of trading on Monday, the Nigerian Exchange (NGX) All-Share Index (ASI) declined by 0.84 per cent to settle at 241,749.11 points, reversing part of the market’s recent gains after several weeks of sustained bullish momentum.

The decline reflected investors’ decision to lock in profits after the market recorded strong gains in recent months, with many traders repositioning their portfolios in anticipation of the earnings season and possible interim dividend announcements.

Despite Monday’s setback, the market maintained a robust performance on a year-to-date basis, with the benchmark index posting a return of about 55.35 per cent, highlighting continued investor confidence in Nigerian equities.

The day’s losses were largely driven by declines in several blue-chip and consumer goods stocks.

Among the major laggards were PZ Cussons Nigeria Plc, BUA Cement Plc, Cadbury Nigeria Plc, NASCON Allied Industries Plc, First HoldCo Plc, Zenith Bank Plc, and Guaranty Trust Holding Company (GTCO) Plc, all of which recorded notable price declines that weighed heavily on the broader market.

Market analysts attributed the downturn primarily to profit-taking activities, noting that many investors opted to realise gains after the recent rally while awaiting the financial performance of major listed companies for the first half of 2026.

According to analysts, the earnings season is expected to provide fresh direction for the market, as investors assess corporate profitability, dividend prospects, and management outlooks amid Nigeria’s evolving macroeconomic environment.

Although the benchmark index closed lower, trading activity remained strong as investors continued to actively buy and sell equities across various sectors.

Trading volume increased compared with the previous session, indicating sustained market participation despite the decline in share prices.

On the gainers’ chart, First HoldCo Plc emerged as one of the most actively traded stocks, recording significant investor interest during the session, while Fidelity Bank Plc also posted impressive gains as banking stocks continued to attract attention from institutional and retail investors.

Market watchers expect trading in the coming days to remain influenced by the release of corporate earnings, interim dividend declarations, and broader macroeconomic developments.

They believe that while intermittent profit-taking may continue after the market’s impressive rally this year, fundamentally strong companies with healthy earnings are likely to attract renewed buying interest.

Overall, Monday’s performance underscores the cautious mood among investors as they await key financial disclosures, even as the Nigerian equities market continues to rank among the best-performing markets globally in 2026.