Sell-offs in key Nigerian stocks including BUA Foods Plc, MTN Nigeria Communications Plc, and Stanbic IBTC Holdings Plc triggered a sharp decline on the Nigerian Exchange (NGX) on Tuesday, erasing N1.14 trillion in investor value and stalling the market’s recent upward momentum. The All-Share Index fell by 0.91 per cent to close at 194,484.61 points, while market capitalisation dipped to N124.83 trillion, moderating the year-to-date return to 24.98 per cent.
The drop came just a day after NGX issued an investor alert highlighting significant price movements in some listed companies. The Exchange reminded investors to base decisions on publicly available data, company fundamentals, and verified financial performance. NGX emphasized its commitment to a fair and transparent market, warning against speculative trading and urging consultation with licensed brokers or financial advisers.
According to research from Cowry Asset Management Limited, investor sentiment was weak amid the broad sell-off. Market breadth closed negative at 0.66x, with 27 stocks advancing against 40 decliners. Sector performance was mixed: Banking, Oil & Gas, and Industrial Goods indices gained, while Insurance and Consumer Goods indices fell, offsetting overall gains. Commodity prices, however, remained stable.
Further analysis from CardinalStone attributed the bearish market to sharp declines in top performers, including BUA Foods (-9.99%), MTN Nigeria (-2.56%), and Stanbic IBTC (-5.35%). Trading activity was also uneven, with the number of deals falling 24 per cent to 72,218 and volume down 11.7 per cent to 1.14 billion units. Despite this, total transaction value rose 69.3 per cent to N53.35 billion, led by Aradel and JapaulGold, highlighting selective investor engagement.
Among individual stock movements, Jaiz Bank, Infinity Trust Mortgage Bank, and FCMB posted the largest gains, while BUA Foods, Ellahlakes, and JapaulGold recorded the steepest declines. Analysts note that the session reflects ongoing profit-taking pressures and cautious investor positioning despite strong year-to-date returns, signaling a period of consolidation for the NGX market.
source: punch