Nigeria’s equities market has lost about N5 trillion in seven trading sessions, as pre-election concerns and aggressive profit-taking continue to weigh on investor sentiment after the NGX All-Share market capitalisation crossed the N160 trillion mark earlier this month.
Market capitalisation, which reached a record N160.42 trillion on August 10, 2026, dropped to N155.417 trillion by August 19, marking a sharp reversal from the market’s impressive rally. The sell-off has also pushed Nigeria out of the position of the world’s best-performing stock market, with South Korea and Ghana now ranking ahead of the Nigerian market.
According to Bloomberg data covering 92 stock exchanges, Nigeria’s dollar-denominated year-to-date return stood at 65.23 per cent as of August 14, compared with 68.52 per cent for South Korea and 66.68 per cent for Ghana. Analysts say the decline reflects growing caution among investors who are reassessing their positions after the strong gains recorded in Nigerian equities earlier in the year.
Executive Director of Halo Capital Management Limited, Dr Paul Uzum, attributed the selling pressure to several factors, including the proposed Dangote Refinery initial public offering (IPO), foreign investors repositioning their portfolios ahead of the next general election and domestic investors taking profits. He explained that some investors were selling existing holdings to free up funds for the expected Dangote Refinery offer, while others were shifting money into alternative assets as they considered some equities fully valued after their recent gains.
The impact has been felt across major sectors, with several large-cap stocks recording notable declines. First HoldCo fell 7.04 per cent from N142 to N132, while BUA Foods dropped 10 per cent from N845.10 to N760.60. In the insurance sector, NEM Insurance declined 5.21 per cent, AIICO Insurance lost 3.66 per cent and AXA Mansard fell 9.16 per cent. The broad-based decline highlights the renewed pressure on the NGX as investors balance profit-taking opportunities with election-related uncertainty and the prospect of new investment opportunities.
source: The guardian
