The Nigerian equity market experienced a downturn on Tuesday, concluding a recent rally that had driven investor optimism. According to data from the Nigerian Exchange (NGX), profit-taking in banking stocks was largely responsible for the market’s decline, which overshadowed gains in consumer goods shares. The All-Share Index fell by 0.47 percent, closing at 189,362.94, down from 190,262.44 the previous day. Consequently, the market capitalization dropped from N122.13 trillion to N121.55 trillion, marking a significant shift in trading dynamics.

Despite the overall decline, trading activity showed a mixed performance with a surge in the number of transactions. The total number of deals rose by 34.82 percent, reaching 86,697 transactions, and the volume of shares traded increased by 12.93 percent to 1.19 billion units. However, the total transaction value decreased by 4.44 percent, down to N60.19 billion. This indicates that while trading activity was vibrant, it was not enough to counterbalance the steep losses in major banking stocks.

The banking sector specifically saw the sharpest declines, with the NGX Banking Index dropping by 3.69 percent. Major players in the sector faced substantial losses, as seen with shares of Zenith Bank Plc plummeting by 10.00 percent, United Bank for Africa Plc falling by 6.56 percent, and Access Holdings Plc declining by 4.63 percent. These fluctuations highlight the volatility in the banking sector and the impact of profit-taking strategies among investors, reflecting a cautious sentiment as the market adjusts after weeks of gains.