Amaechi Raphael Chinedu

@Official_ARC·13h

The NGX is about 3.5% below its record. Three reasons behind the pullback, and what to watch today

Monday's close: the All-Share Index fell 0.91% to 245,278.34, and market value slipped under ₦160trn to ₦159.26trn. That leaves the index about 3.5% below this year's all-time high of roughly 254,067, though it is still up well over 50% for 2026. Why the market has been cooling, according to analysts quoted by Nairametrics this morning: 1. Profit-taking after a big run. After months of gains, both institutions and retail investors have been locking in profits. Monday's 40 decliners against 15 gainers fits that picture. 2. Bank capital raises soaking up cash. Banks raising fresh capital under the CBN recapitalisation exercise have run public offers and rights issues, and some investors are selling listed shares to fund those subscriptions. 3. High rates elsewhere. With the policy rate at 23%, Treasury bills and bonds pay competitive yields, so some money is drifting to fixed income. What to watch in today's session: - Banks. They dominated Monday's activity: Access Holdings led with 23.4m shares traded, UBA moved 22.8m, and $GTCO shares worth ₦1.78bn changed hands. GTCO also pays its ₦1.00 interim dividend today. - $DANGCEM after Monday's 5.50% fall to ₦1,008. It is one of the biggest companies on the exchange, so its next move carries a lot of weight in the index. - The levels chartists mention. Nairametrics flags 242,500 to 244,000 as near-term support, then the round 240,000 mark. These are reference points traders watch, not predictions. - Cowry Asset Management says bargain-hunting could support a near-term recovery, but continued profit-taking may cap gains. Also on the calendar: Zenith Bank's ₦1.50 interim qualifies Friday, Oct 23, and the Dangote Refinery IPO closes Oct 27. Want to see how a pullback like this lands on what you own? Add your portfolio on Gopexly and track your daily moves against the market. Not financial advice.