After a sustained period of bullish momentum that saw the Nigerian stock market reach historic milestones, the inevitable cooling period arrived on Tuesday.
Investors, eager to lock in gains from the recent multi-day surge, pivoted to sell-offs, causing the Nigerian Exchange Limited (NGX) All-Share Index (NGX-ASI) to retreat by 0.48 percent.
The strategic profit-taking on the Nigerian Bourse effectively clipped the rally’s wings, pulling the index down to 189,362.94 points as market participants balanced their portfolios ahead of upcoming corporate earnings. Likewise, the market capitalisation dropped to N121.552 trillion.
The NGX-ASI had shattered the 190,000-point barrier, making a 0.48 percent dip on Tuesday a common technical pullback after such a massive run.
Forty-four stocks gained as against 40 losers. In 86,607 deals, investors exchanged 1,199,845,750 shares valued at N60.193billion.
Read also: Stocks see early rally as PenCom ignites liquidity tsunami at NGX
MTNN led the laggards after shedding N29.70, followed by Skyway Aviation Handling Company which lost N13, Mecure (-N10.40), Zenith Bank (-N8.95) and Lafarge Africa (-N8).
The total market capitalisation had also hovered around N122 trillion, reflecting a significantly deepened market compared to previous years.
Ahead of Tuesday’s trading, Lagos-based Vetiva Research analysts noted that the current market regime is driven by a powerful confluence of fresh pension fund liquidity and strong corporate earnings momentum.
“It is clear that big money is aggressively reweighting into high-cap names. However, from a quant perspective, the Oil & Gas Index is now trading at an extreme YtD return …, suggesting it is entering overbought territory.
“The next session will likely be a test of conviction,” they noted.
