The Nigerian stock market extended its losing streak on Thursday, August 20, as renewed selling pressure across major sectors wiped about N440.33 billion from market value. The decline marked the eighth consecutive session of losses, bringing the market’s total capitalisation loss during the latest sell-off to approximately N5.4 trillion.
The NGX All-Share Index fell 0.30% to 240,037.80 points, down from 240,750.47 points in the previous session. Market capitalisation also dropped from N155.42 trillion to N154.98 trillion, as investors continued to take profits from heavyweight stocks, particularly in the energy, banking and insurance sectors.
Energy stocks remained at the centre of the market pressure, with Aradel Holdings falling 5.40% to N1,300.00. Banking giants also recorded losses, with UBA down 2.17%, Access Holdings declining 0.74%, Zenith Bank shedding 0.48% and GTCO losing 0.23%. Insurance stocks suffered some of the steepest declines, as International Energy Insurance, WAPIC Insurance and FTG Insurance all fell by nearly 10%.
The broader sector performance reflected the weakness, with the NGX Oil & Gas Index dropping 2.49%, while the Insurance and Banking indexes declined 0.79% and 0.41%, respectively. However, the Consumer Goods Index gained 0.10%, while the Industrial Index remained almost unchanged. Nigerian Breweries, AIICO Insurance and Jaiz Bank were among the stocks that posted gains, offering limited support to the wider market.
Despite the sharp correction, the Nigerian equities market remains strongly positive on a year-to-date basis, with the NGX All-Share Index still up 54.3%. However, the eight-day sell-off shows that investors are increasingly locking in profits after the market’s powerful rally earlier in August. From August 10 to August 20, the index declined 3.42%, while market capitalisation fell 3.39%, suggesting that selling pressure could remain a key focus for investors as they reassess stock valuations.
source: nairametrics
