Nigerian Stock Market Extends Losses, Investors Lose N2.28 Trillion in 3-Day Selloff

The Nigerian equities market extended its losing streak on Wednesday, marking a third straight day of declines as investors reacted to sustained profit-taking across major blue-chip stocks. The NGX All-Share Index fell by 1.44% to close at 243,132.61 points, wiping out about N2.28 trillion in market value and pulling total capitalization down to N155.94 trillion.

The downturn was largely driven by aggressive selloffs in heavyweight stocks such as MTN Nigeria, Lafarge Africa, First HoldCo, and NGX Group, which collectively weighed on overall market sentiment. Despite the negative close, trading activity surged, suggesting that investors remained active in repositioning their portfolios amid shifting market conditions.

Market data showed mixed signals beneath the bearish surface. While the volume of traded shares rose by 28.41% to 922.97 million and total value jumped by 44.25% to N42.27 billion, market breadth remained strongly negative with 43 losers compared to just 15 gainers. Sector performance was broadly weak, with insurance stocks leading the decline, followed by banking and industrial goods.

Among the notable movers, MTN Nigeria dropped 6.95% despite being the most traded stock by value at N17.61 billion. Lafarge Africa led the losers’ chart with a near 10% decline, while banking stocks such as First HoldCo also recorded sharp losses. On the flip side, Abbey Mortgage Bank and International Energy Insurance were among the top gainers, each posting close to 10% growth.

Although the market correction has now erased more than N4 trillion from recent highs, analysts note that the NGX still maintains a strong year-to-date return of 56.24%. However, with the index retreating from its May peak of 252,508 points, sentiment is expected to remain cautious in the short term as investors continue to take profits, even as selective bargain hunting may emerge in fundamentally strong stocks.

 source: nairametrics