The Nigerian Exchange Limited (NGX) closed in the red on Wednesday, as persistent sell pressure in heavyweight stocks shaved off N781bn from investors’ wealth, dragging total market capitalisation to N88.8tn, down from N89.6tn in the previous session.
The All-Share Index (ASI) also retreated by 1,233.87 points or 0.87 per cent to settle at 140,332.44 points, extending the equities market’s week-to-date loss to 3.42 per cent.
This downturn came despite a four-week gain of 5.35 per cent and an impressive year-to-date return of 36.34 per cent, reflecting the volatility investors have had to navigate in recent weeks.
According to trading data, a total of 573.68 million shares valued at N12.86bn were exchanged in 25,855 deals, representing a 21 per cent decline in volume and a 10 per cent drop in the number of deals compared with the previous session.
Fidelity Bank maintained its position as the most traded stock by volume with 96.07 million shares worth N1.99bn, followed by Veritas Kapital Assurance (36.6m), Universal Insurance (32.9m), and Access Holdings (30.3m).
In terms of value, Fidelity Bank also topped the chart, alongside MTN Nigeria, Stanbic IBTC, GTCO, and Access Holdings.
Market breadth remained negative as 45 stocks declined against 17 gainers, signalling widespread bearish sentiment.
SFS Real Estate Investment Trust led the gainers’ table with a 9.99 per cent increase to close at N274.15 per share, while Jaiz Bank advanced 9.75 per cent to N4.39. Other gainers included Secure Electronic Technology (+9.38%) and Omatek Ventures (+5.88%).
On the flip side, University Press led the losers with a 10 per cent decline to close at N6.30, alongside Thomas Wyatt Nigeria, International Energy Insurance, and Veritas Kapital Assurance, which all recorded steep losses.
Blue-chip stocks like BUA Cement and Julius Berger also dragged the market lower, shedding 9.96 per cent each to close at N151.80 and N132.90 respectively.
Sectoral performance showed mixed results. The Banking Index emerged as the lone bright spot, gaining 0.47 per cent on the back of renewed interest in tier-one lenders.
Despite a weekly decline of 3.73 per cent, the sector still boasts a strong 41.5 per cent year-to-date return, underscoring the resilience of financial stocks.
Meanwhile, the Consumer Goods Index slipped marginally by 0.04 per cent, the Oil & Gas Index lost 0.06 per cent, the Pension Index shed 0.23 per cent, and the Premium Index dipped by 0.71 per cent, reflecting broad-based profit-taking.
Market analysts attributed the selloffs to investor profit-taking in recently appreciated stocks, coupled with cautious sentiment ahead of global economic signals, including the U.S. Federal Reserve’s Jackson Hole meeting, which is being closely watched by international investors.
According to analysts at Meristem Securities, the bearish performance was largely driven by “sustained sell pressure on bellwether stocks as investors rebalance their portfolios.”
They, however, noted that the strong year-to-date returns suggest long-term confidence in the market, particularly as Nigeria continues to attract foreign inflows into equities amid higher yields and improved corporate earnings.
With the NGX still posting one of the strongest returns among frontier markets this year, analysts say the recent dip presents opportunities for bargain hunters to accumulate fundamentally sound stocks at lower prices.
However, they cautioned that volatility will likely persist in the near term as both local and foreign investors react to macroeconomic developments, interest rate signals, and corporate disclosures.
For now, the sustained selloffs have reminded investors of the delicate balance between short-term risks and long-term opportunities in Nigeria’s capital market.