The Nigerian equities market experienced a notable setback on Thursday, as bearish trading sentiments erased N438 billion from investors’ wealth, dragging the Nigerian Exchange Limited’s (NGX) total market capitalisation down to N88.9 trillion by the close of the session.
Analysts have attributed the downturn to profit-taking in large-cap stocks and sustained sell-offs across key sectors, highlighting growing investor caution amid global and domestic economic pressures.
The NGX All-Share Index (ASI) declined by 691.52 points, representing a 0.49 per cent drop, closing at 140,557.24 points compared with 141,248.76 points recorded in the previous session.
This pullback trimmed the week-to-date gain to 0.16 per cent and month-to-date return to 0.5 per cent, although the year-to-date growth remains robust at 36.56 per cent.
Market turnover reflected heightened trading activity, with investors exchanging 884.96 million shares valued at N28.25 billion across 26,129 deals.
While the volume and value of traded shares rose by 30 per cent and 27 per cent respectively, the number of deals declined by nine per cent compared with Wednesday’s session, suggesting concentrated trading in select equities.
A total of 129 equities participated in trading, with 19 gaining and 39 losing. SCOA Nigeria led the gainers’ chart, rising 10 per cent to close at N6.05 per share. RT Briscoe followed with a 9.8 per cent appreciation to N3.36, while N.E.M Insurance gained 7.96 per cent to N31.20.
Nigerian Exchange Group advanced 7.94 per cent to N57.80 per share, signaling pockets of resilience amid the broader market slump.
Conversely, International Energy Insurance recorded the steepest decline, losing 9.62 per cent to close at N3.29.
Omatek Ventures fell 8.97 per cent to N1.32, Ellah Lakes shed 8.49 per cent to N13.68, and Royal Exchange depreciated 6.98 per cent to N2.00 per share. The sell-off in these mid and small-cap stocks reinforced the day’s bearish tone.
Top trading activity was dominated by Champion Breweries, which led in volume with 201.05 million shares worth N3.47 billion.
Access Holdings followed with 102.18 million shares valued at N2.76 billion, while Guaranty Trust Holding Company emerged as the most traded stock by value, exchanging 96.45 million shares worth N8.89 billion.
Sterling Bank traded 90.82 million shares valued at N726.59 million, and FBN Holdings recorded 46.25 million units worth N1.50 billion.
Sectoral performance was largely negative, with the Premium Index down 0.44 per cent, the Industrial Index slipping 0.45 per cent, and the Main Board Index retreating 0.53 per cent.
However, the Insurance Index bucked the trend, gaining 0.44 per cent, extending its one-week rise to 7.62 per cent and its year-to-date return to an impressive 81.56 per cent.
Market analysts highlighted that the decline reflected cautious investor sentiment amid global uncertainties, currency volatility, and profit-taking following recent rallies.
“The current bearish trend is largely due to investors locking in gains from earlier surges, particularly in large-cap stocks.
While this creates temporary pressure, the market fundamentals remain intact, and sectors like insurance continue to show strong performance,” said a Lagos-based equity analyst who requested anonymity.
Despite Thursday’s downturn, year-to-date performance remains solid.
The ASI has recorded a cumulative growth of 36.56 per cent, underscoring the market’s resilience amid macroeconomic headwinds and ongoing reforms aimed at improving liquidity and investor confidence.
The Nigerian Exchange has recently introduced measures to deepen market participation, including expanded investor education programs, improved disclosure practices, and incentives for sustainable investments.
Experts say that these interventions, coupled with the gradual recovery of key sectors, provide a strong foundation for medium to long-term market growth.
Investors are advised to monitor global oil prices, interest rate movements, and domestic policy developments, as these factors are likely to influence market direction in the coming weeks.
While short-term volatility is expected, the broader outlook remains cautiously optimistic, driven by improving corporate earnings and targeted government reforms.