Investors Lose N371bn as Sell Pressure Hits NGX

The Nigerian stock market closed on a bearish note on Monday as sustained sell pressure in blue-chip and banking stocks wiped off about N371 billion from investors’ wealth. The downturn came after several weeks of mixed trading, reflecting growing investor caution amid macroeconomic uncertainties and profit-taking in key equities.

According to data from the Nigerian Exchange Limited (NGX), the All-Share Index (ASI) declined by 0.26% to close at 99,320.45 points, down from 99,578.38 points recorded in the previous session. Consequently, the market capitalisation fell from ₦142.12 trillion to ₦141.75 trillion, representing a loss of ₦371 billion in a single trading day.

Market analysts attributed the negative sentiment to profit-taking activities and cautious positioning by investors ahead of major financial disclosures and global economic headwinds. The selloffs were largely concentrated in the banking, industrial, and consumer goods sectors — particularly in stocks such as Dangote Cement, UBA, Zenith Bank, and MTN Nigeria.

Commenting on the development, analysts at Vetiva Capital Management Limited noted that the pullback was driven by short-term profit-taking after recent rallies in large-cap stocks. “We observed mild corrections across key tickers, particularly in the industrial and banking sectors. This suggests investors are booking profits in anticipation of upcoming macroeconomic adjustments,” the firm said.

Similarly, trading activity on the exchange showed a downturn as both the volume and value of transactions dipped. A total of 297.5 million shares valued at ₦4.13 billion were traded in 7,102 deals, compared to 432.7 million shares worth ₦6.84 billion exchanged in the previous session.

Sectoral Performance
Across sectoral indices, performance was largely bearish. The Banking Index fell by 0.41%, dragged down by losses in FBN Holdings, GTCO, and Zenith Bank. The Industrial Goods Index also dropped by 0.35%, following price declines in Dangote Cement and BUA Cement.

However, the Insurance Index managed a marginal gain of 0.08%, buoyed by buying interest in AIICO Insurance and NEM Insurance stocks. The Oil & Gas and Consumer Goods indices closed flat after mixed sentiments in Seplat, TotalEnergies, and Nestlé Nigeria.

Top gainers for the day included Juli Plc (+9.70%), Japaul Gold (+8.57%), and Multiverse Mining (+7.60%), reflecting continued interest in penny stocks with short-term potential. On the losers’ chart, May & Baker Nigeria (-9.85%), UPDC (-8.50%), and Eterna Plc (-7.14%) recorded the highest declines.

Market breadth remained negative, with 23 gainers against 32 losers, indicating weak investor confidence.

Financial analysts believe that the decline may be temporary, with potential rebound opportunities as investors reassess their portfolios. “While the market has recorded some losses, the underlying fundamentals of several listed companies remain strong. Long-term investors could see this as an opportunity to accumulate quality stocks at discounted prices,” said Ambrose Omordion, Chief Research Officer at InvestData Consulting Limited.

He further advised investors to remain cautious amid external pressures such as fluctuating oil prices, rising inflation, and uncertainty over interest rate adjustments by the Central Bank of Nigeria (CBN).

On the global front, weakening commodity prices and cautious sentiment in emerging markets also contributed to the downtrend. The World Bank’s latest projection of a decline in commodity prices, coupled with renewed volatility in the oil market, has dampened risk appetite among foreign investors in frontier markets like Nigeria.

Despite the losses, some analysts maintain that the NGX remains attractive in the medium term, citing expected earnings from key sectors such as oil & gas, financials, and telecommunications. “We anticipate improved liquidity and a return of investor confidence once corporate results and fiscal clarity around government reforms become more visible,” said analysts at Cordros Securities.

As the week progresses, market watchers expect trading to remain mixed, with bargain hunters likely taking positions in undervalued stocks, even as broader market sentiment remains cautious.

 

Overall, Monday’s decline underscores the sensitivity of the Nigerian equities market to macroeconomic developments and investor sentiment swings. Analysts have urged market participants to diversify their portfolios and adopt a medium-to-long-term investment approach amid current volatility.