Nigerian Stock Market Loses N5.64tn as NGX Sheds ₦151.33tn

By Opeyemi Adelakun

Investors on the Nigerian Exchange (NGX) recorded a sharp loss of ₦5.64 trillion in market value within one week as profit-taking, portfolio rebalancing, and weakening sentiment triggered a broad-based sell-off across key sectors of the equities market.

The downturn halted the recent bullish run that had pushed the market to record highs, with analysts linking the decline to investors locking in gains and shifting funds toward fixed-income instruments offering higher yields amid macroeconomic uncertainties.

Data from the NGX showed that the All-Share Index (ASI) fell by 3.59 per cent week-on-week, closing at 235,941.27 points, down from 244,738.74 points at the start of the trading week.

Market capitalisation also dropped sharply by ₦5.64 trillion, closing at ₦151.33 trillion, reflecting widespread declines in listed equities.

The week’s performance moderated the market’s year-to-date return to 51.62 per cent, signalling a slowdown in investor confidence after months of sustained gains.

Market analysts described the development as a correction following an extended rally, particularly in banking and consumer goods stocks that had previously driven strong market performance.

Group Managing Director of Crane Securities Limited, Mike Eze, said the decline reflects a healthy market adjustment rather than a structural downturn.

“What investors are witnessing is largely a market correction after an extended period of strong gains,” he said, adding that profit-taking was inevitable after months of bullish activity.

He noted that the market’s long-term outlook remains tied to corporate earnings strength and broader macroeconomic stability, stressing that corrections often create new entry opportunities for long-term investors.

Financial analyst Femi Lawal said the sell-off also reflected shifting investor preferences toward fixed-income assets amid elevated interest rates and tightening liquidity conditions.

He added that market breadth weakened significantly, with 78 decliners compared to just 16 gainers, indicating cautious sentiment among investors.

Trading data showed mixed activity, as total volume declined by 38.04 per cent week-on-week, even as transaction value rose to ₦254.79 billion across 287,541 deals.

The Financial Services Industry dominated trading, accounting for 67.44 per cent of total volume, followed by the Services and Consumer Goods sectors.

Access Holdings, Sterling Financial Holdings Company, and Jaiz Bank were among the most actively traded stocks during the period.

Despite the sharp decline in market value, analysts maintained that the correction could support long-term stability by aligning stock prices with underlying fundamentals and creating fresh entry points for investors.