Bears Return To NGX As Investors Shed N648bn

Renewed profit taking swept through the Nigerian Exchange on Wednesday, erasing about N648bn from the value of listed equities and halting the brief recovery that had lifted the market only a day earlier.

The benchmark All Share Index shed 0.41 per cent to close at 246,980.17 points, down from 247,984.55 points at the open, according to trading data from the Nigerian Exchange Limited. Total market capitalisation slid in tandem, contracting from N159.992tn to N159.344tn by the closing bell.

Market breadth, a gauge of investor sentiment, tilted firmly bearish. Forty five stocks declined against 23 that appreciated, showing that sellers held the upper hand across most counters through the session.

The retreat was led by Cornerstone Insurance, which fell the maximum 10 per cent to close at N5.40 from N6.00, alongside Legend Internet, which also dropped 10 per cent to N4.05 from N4.50. The Initiates eased 9.91 per cent to N30.00, Guinea Insurance shed 9.78 per cent to 83 kobo, and ABC Transport slipped 9.45 per cent to N5.75.

Not every counter bled. Insurance names stayed in demand among bargain hunters, with Lasaco Assurance topping the gainers after rising 10 per cent to N2.42 from N2.20. CNIF advanced 9.98 per cent to N154.30, NEM Insurance climbed 9.97 per cent to N34.20, SUNU Assurances added 9.83 per cent to N3.91, and Prestige Assurance rose 7.14 per cent to N1.50.

Several heavyweight stocks cushioned the fall by closing flat. MTN Nigeria, Dangote Cement, Seplat Energy, Custodian Investment and Julius Berger were among the large capitalisation shares that ended unchanged, limiting the damage to the headline index.

Wednesday’s dip interrupted a fragile rebound. On Tuesday, the market had gained roughly N481bn as buying interest in insurance and selected large caps lifted the index 0.30 per cent, pushing capitalisation close to the N160tn mark. That advance itself followed a soft Monday, when the index slipped 0.05 per cent and investors gave up about N77bn, even as the market held a month to date gain of about 7.8 per cent.

The choppy run reflects a market still finding its footing after a turbulent second quarter. The All Share Index reached a record 252,508.19 points on May 13, when capitalisation peaked at N161.84tn, before a correction set in that deepened through June and wiped more than N13tn from equity values. Trading opened July on a weak note, with the first session of the month erasing N2.39tn as the index tumbled 1.63 per cent to 225,690.07 points.

Despite the volatility, the Exchange remains one of the stronger performers among frontier markets in 2026. Even after Wednesday’s loss, the year to date return sits near 59 per cent, supported by sustained appetite for banking and insurance stocks and by fresh listings, including Sterling Financial Holdings’ supplementary listing of more than 13.8 billion shares, which have expanded the market’s overall size.

Analysts tracking the bourse have signalled that trading is likely to stay mixed in the near term as investors weigh profit taking against bargain hunting, with attention shifting to the wave of half year corporate earnings expected in the coming weeks. Results from tier one banks and consumer goods firms are widely expected to set direction into August.

For now, the market’s rhythm of alternating gains and losses underscores a cautious mood, as portfolio investors lock in profit from the year’s rally while watching interest rate signals and the earnings calendar.