NGX dips after record highs, remains up 54% YTD as investors take profits
Nigerian equities are undergoing a profit‑taking selloff after the NGX All‑Share Index pushed to historic highs early this year. The ASI settled below the 240,000 point but still shows a massive year‑to‑date gain of 54%. The market has lost about ₦137.12 billion ahead of the Eid‑Ul‑Mawlid break, with key support levels at 235,000‑237,500 (first line of defence) and 228,000‑230,000 (medium‑term technical floor). Resistance sits between 242,500 and 245,000; a clear break above that range on strong volume would be needed to revive the steep upward trend.
Domestic retail and institutional investors drive roughly 90% of trading activity, while foreign participation remains around 10%, held back by currency and macro‑outlook concerns. The selloff has hit banking, oil & gas and industrial goods stocks hardest, and insurance equities have faced steep sell‑downs following the introduction of the Insurance Industry Act. Despite the choppy trading, analysts note that earnings reports are mixed but core bellwethers in banking and industry continue to post solid results, underpinning the market’s long‑term outlook.
For investors, the current dip presents potential entry opportunities in tier‑1 banks, oil majors and consumer goods at discounted prices. Watching whether the index holds the 235k‑237.5k support or falls toward the 228k‑230k zone will help gauge near‑term direction. Long‑term participants may use the volatility to accumulate quality stocks, keeping in mind that technicians forecast continued turbulence and choppy trading in the near term.