The Nigerian stock market suffered its sharpest single-day fall in over a decade on Tuesday, as bearish sentiment sent the All-Share Index plunging by 5.01 per cent to close at 141,327.30 points. The rout wiped out about N4.64 trillion from the Nigerian Exchange Limited (NGX) market capitalisation, which fell below the N90 trillion mark to settle at N89.88 trillion. Analysts have described it as the worst decline since 2010, signalling deep investor unease.
Massive sell-offs in blue-chip stocks were at the centre of the meltdown. Dangote Cement, MTN Nigeria, and BUA Cement each fell by the maximum daily limit of 10 per cent, alongside Aradel (-9.67%) and Guaranty Trust Holding Company (-7.69%). The losses came amid widespread liquidation by institutional investors, with many pulling out amid fears of weaker earnings and macroeconomic headwinds.
Only four stocks managed to stay positive in an otherwise grim session. NCR Nigeria Plc rose 9.82 per cent to N21.25, followed by Berger Paints (up 2.56% to N36.00), FCMB Group (+0.96% to N10.50), and AXA Mansard Insurance, which gained 0.25 per cent to N12.10. In contrast, a staggering 61 stocks closed lower, including Custodian, Oando, Transcorp, and Veritas Kapital—all hitting the 10 per cent daily loss threshold.
Trading activity surged despite the sell-off, with total volume traded rising 80.03 per cent to 656.95 million units, while the value of trades jumped 158.86 per cent to N29.39 billion. FBN Holdings led by volume with 68.3 million units traded, while Geregu Power topped the value chart with transactions worth N4.4 billion. Sector performance was equally bleak, led by the Industrial Index (-8.55%), followed by Banking (-7.27%), Oil & Gas (-4.65%), and Insurance (-4.33%).
According to investment firm CardinalStone, Tuesday’s performance marked “the steepest decline since 2010,” as the NGX plunged under heavy pressure. Analysts at Cowry Asset Management said the market slide was driven by “concentrated institutional selling and large block trades,” reflecting significant de-risking by major investors amid declining confidence and worsening market sentiment.
source: Punch