The Nigerian stock market returned to negative territory on Wednesday as sustained selling pressure, largely driven by year-end profit taking and portfolio rebalancing, dented investor sentiment.
The benchmark NGX All-Share Index fell 0.49 percent to close at 143,064.57 basis points.
Consequently, the total market capitalization lost N444.32 billion to close at approximately N91 trillion.
Market breadth closed marginally positive but remained largely balanced as 29 stocks advanced versus 27 losers, indicating the cautious sentiment across the floor.
Topping the gainers chart were AIICO Insurance Plc, NCR Nigeria Plc, Ikeja Hotel Plc, Prestige Assurance Plc and Sterling Financial Holdings Company Plc, reflecting continued bargain hunting and selective positioning in mid-cap stocks. On the losing table were Learn Africa Plc, Cadbury Nigeria Plc, Meyer Plc, UPDC Plc and International Breweries Plc, all of which came under notable selling pressure as investors booked profits before the end of the year.
Sectoral performance was mixed during the session. The insurance index emerged as the top performer with a gain of 2.66 per cent, driven by renewed interest in select underwriting stocks. The banking index also closed higher, advancing 0.24 percent, supported by modest accumulation at tier one and mid-tier lenders. The oil and gas index rose 0.17 percent, reflecting mild buying interest in energy-related counters.
In contrast, the Industrial Goods index recorded the steepest decline of 2.03 percent, hit by losses in heavy manufacturing stocks, while the Consumer Goods index fell 1.33 percent amid selling in major food and beverage names. The commodities sector closed flat during the session.
Trading activity improved significantly, pointing to higher market participation despite the prevailing risk-averse sentiment. Total trading volume increased 32.76 percent to 738.35 million shares. Similarly, the value of transactions increased by 89.89 percent to N35.54 billion, while the number of deals increased by 2.15 percent to 19,919 transactions.
Market operators attributed the sharp increase in turnover largely to increased institutional participation through major block trades, along with sustained activity from retail investors.
Overall, the trading session reflected a market still battling near-term selling pressure as investors continue to reposition their portfolios ahead of the end of the financial year. While higher volumes indicate sustained interest in stocks, analysts expect sentiment to remain cautious in the near term until clearer economic and political direction emerges in the new year.