Bearish Pressure Deepens as Nigerian Stock Market Loses N2.28 Trillion in Midweek Sell-Off

The Nigerian equities market extended its losing streak on Wednesday, closing in the red for the third consecutive trading session as investors continued to take profits. The downturn wiped out about N2.28 trillion in market capitalisation, reflecting growing caution among market participants amid sustained selling pressure.

The All-Share Index (ASI) fell by 3,736.05 points, representing a 1.51% decline, to close at 243,132.61 points. This pullback also dragged the year-to-date return down to 56.24%, signaling a temporary slowdown in the market’s earlier strong performance this year.

Market weakness was largely driven by price declines in heavyweight stocks, including MTN Nigeria, Lafarge Africa, Nigerian Exchange Group, First Holdco, Nigerian Breweries, and Zichis Agro Allied Industry. Analysts noted that the wave of profit-taking has continued to weigh on investor confidence, with expectations that the bearish tone may persist in the short term.

Despite the overall decline, a few stocks managed to post gains. Abbey Mortgage Bank led the advancers, followed by International Energy Insurance, Tripple Gee & Company, Universal Insurance, and Royal Exchange, offering slight relief in an otherwise negative trading session. However, market breadth remained weak, with 43 losers outpacing just 15 gainers.

Trading activity, however, told a more positive story as volume rose sharply by 57.1% to 922.97 million units worth N42.27 billion across 69,332 deals. Sterling Financial Holdings dominated transactions, followed by Access Holdings and Linkage Assurance, indicating continued investor interest even amid broader market weakness.

source: Leadership