After eight consecutive days of gains, Nigerian stocks tumbled 1.4% on Wednesday, with investors cashing in on profits from the banking sector, according to NGX data.
The All-Share Index retreated to 82,024.38 points, just days after surpassing the 80,000 mark for the first time ever on Monday. This psychological milestone had fueled optimism, but profit-taking proved irresistible to investors, especially in the highly liquid banking sector.
The index of Nigeria’s top 10 banks took the brunt of the selling pressure, plummeting 7.97% on the day. This suggests investors were eager to lock in gains from recent rises in bank stocks, likely driven by positive sentiment associated with the market’s overall uptrend.
The Nigerian stocks returned a remarkable 45.90% gain in 2023.
While this pullback marks a temporary pause in the rally, it doesn’t necessarily signal the end of the upward momentum. Investors will likely be watching closely for further developments in the banking sector and other key segments of the market to determine the direction of the next move.
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