Nigerian Stock Market Loses N2.5 Trillion in Three Days as Weak Sentiment Hits Banking and Blue-Chip Stocks

The Nigerian stock market extended its losing streak on Wednesday, wiping out about N2.5 trillion in just three days as cautious investor sentiment continued to weigh on trading activity. The decline reflects growing uncertainty in the market, with investors increasingly opting to lock in gains rather than take fresh positions.

Market capitalisation of listed equities on the Nigerian Exchange Limited fell to N154.445 trillion, down from N156.97 trillion the previous week. This represents a 1.6% drop driven largely by sustained sell-offs in major stocks across the banking, industrial, and energy sectors.

Heavy profit-taking pressure was recorded in stocks such as Aradel Holdings Plc, alongside sell-offs in blue-chip names including Guaranty Trust Holding Company, Zenith Bank Plc, Dangote Sugar Refinery Plc, and the Nigerian Exchange Group. Analysts noted that the losses were intensified by broad-based profit-taking, especially among previously high-performing banking stocks.

The benchmark NGX All-Share Index also reflected the downturn, opening the week at 244,738.74 basis points before sliding by 1.6% to close at 240,802.72 basis points. Despite the recent weakness, the index still maintains a strong year-to-date gain of 54.7%, highlighting earlier momentum in the market before the recent correction.

Looking ahead, analysts at Cordros Securities Limited expect trading to remain volatile as investors balance profit-taking with selective bargain hunting, especially ahead of key inflation data. Similarly, Cowry Assets Management Limited noted that while sentiment may stay cautiously positive due to interest in fundamentally strong stocks, short-term volatility is likely to persist as investors reposition their portfolios.

source: This day