Nigerian Stocks Decline from Record Highs Amid Profit-Taking

Nigerian equities have recently faced a downturn, retreating from an all-time high of approximately 254,067 points to a trading level of 245,278 points on the NGX All-Share Index (ASI). This decline reflects a short-term bearish pullback, although the market maintains a year-to-date gain of 59.04%.

Both institutional and retail investors are unwinding positions despite attractive buying opportunities in sectors such as Tier-1 banks, telecommunications, and cement. The Central Bank of Nigeria's recapitalization exercise has led several banks to launch public offers and rights issues, absorbing market liquidity.

Consequently, some investors have sold equities in the secondary market to participate in these discounted offerings. The market breadth has been negatively impacted by financials and consumer staples, with declining stocks outnumbering advancing ones.

Immediate downside support is noted at 242,500–244,000 points, while key demand zones are identified at 235,000–238,000 points. A break below 224,000 points would indicate a shift from a bullish to a neutral or bearish trend.