NGX Eases Lower on Tuesday After Four Day Rally

Lagos State – The Nigerian Exchange (NGX) retreated on Tuesday, with the All Share Index down 0.84 per cent to close at 241,749.11 points, as investors booked profits following a strong four-day rally that added N9.3 trillion in market value last week.

Market capitalisation stood at N155.13 trillion at the close of trading, with market breadth turning negative as 21 stocks advanced, 48 declined and 77 remained unchanged.

Nigeria Infrastructure Debt Fund led gainers, rising 9.97 per cent to close at N163.30, while PZ Cussons Nigeria led losers, shedding 10 per cent to close at N81.00, reflecting a broadly cautious session after last week’s sharp gains.

The pullback follows a rally that saw the ASI climb 6.35 per cent over four consecutive trading days last week, lifting the market’s year to date return above 56 per cent, as investors continued to react positively to reforms and improved market sentiment.

Analysts had earlier flagged the likelihood of a pullback after the sharp rally, noting that short term traders would look to lock in profits at elevated price levels, while describing any retreat as a potential buying opportunity provided the index holds above key support levels.

Market direction in the coming sessions is expected to hinge on corporate disclosures, second quarter earnings expectations and the sustainability of recent fund inflows into Nigerian equities.