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The Nigerian Exchange (NGX) All-Share Index has recorded its first weekly decline in recent weeks, reflecting a shift in market sentiment as profit-taking intensified after sustained rallies. The Nigerian All-Share Index fell by 0.37% to close at 165,512.18 points, effectively wiping ₦394 billion off investor portfolios. This downturn, which saw total market capitalization settle at ₦105.96 trillion, was primarily driven by aggressive profit-taking following a period of sustained rallies. Despite the broader decline, market breadth remained positive with 57 gainers against 40 losers, suggesting that while heavyweights faced selling pressure, bargain hunting persisted in select low- and mid-cap stocks like DEAP Capital and SCOA Nigeria.

Sectoral performance was largely bearish, with the Consumer Goods and Banking sectors leading the decline, dropping 1.48% and 1.32% respectively. Heavy sell-offs in major tickers such as Nigerian Breweries and FIRSTHOLDCO contributed to the slump, while the Oil & Gas sector managed to buck the trend with a 1.36% gain fueled by ARADEL. Overall trading activity softened significantly, with total deals, volume, and value all recording double-digit percentage drops as investors adopted a more cautious stance in the face of market volatility.

Looking forward, analysts from Cowry Asset Limited suggest the market will likely trade within a narrow range as the year-to-date return moderates to 6.36%. While the recent correction has trimmed earlier gains, experts believe downside risks remain limited for fundamentally sound, dividend-paying equities. Investors are expected to remain selective, balancing the current “sell-side” pressure with strategic entries into undervalued stocks as the market searches for a new support level.