 sheds ₦54 billion in market capitalisation as bullish streak halts on May 29, 2025.){kind=link}
The Nigerian Exchange Limited (NGX) recorded a sharp decline on Thursday, May 29, 2025, with investors witnessing a ₦54 billion loss in market capitalisation, marking the end of a recent bullish trend. The setback occurred despite strong positive market breadth, as 41 equities posted gains against 24 losers.
At the close of trading, the NGX All-Share Index (ASI) dropped by 84.53 points, or 0.08%, to settle at 111,818.08, down from 111,902.61 in the previous session. Consequently, market capitalisation decreased from ₦70.56 trillion to ₦70.50 trillion, reflecting a dip in investor confidence after several sessions of gains.
Interestingly, trading activity remained resilient. A total of 556.4 million shares valued at ₦17.17 billion were exchanged in 18,505 deals — a 9% increase in trading volume and an 11% rise in the number of transactions from the previous day. This suggests that investors are still active in repositioning their portfolios despite the market correction.
Mutual Benefits Assurance Plc emerged as the session’s top gainer, appreciating by 10% to close at ₦1.10. University Press Plc followed with a 9.98% gain, ending at ₦6.17, while Academy Press Plc rose 9.88% to ₦4.45. Other notable gainers include SCOA Nigeria Plc (9.62%) and Livestock Feeds Plc (9.58%).
These performances underscore the growing investor interest in mid-cap and penny stocks, especially within the insurance, agriculture, and publishing sectors — sectors that have shown resilience amid macroeconomic uncertainties.
The day’s biggest loser was NPF Microfinance Bank, which dropped 11.52% to ₦2.15. Energy giant Seplat Petroleum Development Company Plc and tech firm Legend Internet both lost 10%, while Abbey Mortgage Bank Plc slipped by 9.9% to ₦6.19.
The sharp losses in banking and energy-related stocks contributed significantly to the day’s market downturn, despite broader market optimism.
On the activity chart, United Bank for Africa (UBA) led with a trading volume of 82.6 million shares, followed by Fidelity Bank with 70.6 million shares. Nigerian Breweries traded 37.2 million shares, while Tantalizers Plc recorded 36.3 million shares.
This trading pattern reaffirms the banking sector’s dominance in daily market turnover, fueled by renewed investor focus on dividend-paying stocks and attractive valuations.
The NGX sectoral indices showed a mixed performance:
Consumer Goods Index rose by 0.94%,
Banking Index inched up by 0.3%,
Main Board Index gained 0.59%,
Industrial Goods Index remained flat,
Insurance Index declined slightly by 0.17%.
This sectoral movement illustrates cautious optimism, with consumer and banking stocks offering some upward momentum amid broader market pressures.
Despite Thursday’s setback, the NGX has maintained a one-week gain of 2.41%, a four-week gain of 5.69%, and a year-to-date (YTD) return of 8.64%. These metrics reflect underlying investor confidence, fueled by macroeconomic reforms, improving earnings reports, and rising foreign interest in Nigerian equities.
On Wednesday, May 28, 2025, the Exchange had gained ₦187 billion in market capitalisation — a rally spurred by strong corporate earnings, favorable policy pronouncements, and easing inflationary concerns.
Financial analysts remain cautiously optimistic. Speaking to The Punch, Lagos-based stockbroker Bayo Olaniyan noted, “The pullback is healthy. After several sessions of strong gains, investors are naturally inclined to take profit. What matters is that underlying fundamentals remain positive — we are seeing liquidity, sector rotation, and active participation from both domestic and foreign investors.”
The broader Nigerian economy has shown signs of recovery, helped by recent policy initiatives by the Central Bank of Nigeria under Governor Olayemi Cardoso, including efforts to unify the forex market and curb inflation. Analysts believe these moves are starting to reflect in the equities market as confidence slowly rebuilds.
However, uncertainties such as fluctuating global oil prices, rising interest rates, and domestic insecurity could pose short-term risks to sustained bullish momentum.
While Thursday’s ₦54 billion drop marked a pause in the Nigerian Exchange’s recent upward trajectory, strong trading activity and robust sectoral fundamentals indicate that the market remains resilient. Investors are advised to maintain a medium-to-long-term view, focusing on stocks with sound fundamentals, consistent dividends, and clear growth prospects.