The Nigerian Exchange (NGX) started September on a disappointing note, recording a N363 billion decline in market capitalisation on the first trading day of the month.
The bearish mood reinforced concerns about the sustainability of recent market gains, as investor confidence continues to swing amid economic pressures.
According to data from the NGX, the market capitalisation dropped to N88.4 trillion from the previous session’s close, while the All-Share Index (ASI) shed 573.31 points, or 0.41 per cent, closing at 139,722.19 basis points.
This extended a negative run that has seen the index fall by 1.21 per cent in one week and 3.02 per cent in four weeks, despite still holding a robust year-to-date gain of 35.75 per cent.
Trading activity showed a mixed picture. A total of 407.96 million shares worth N14.77 billion were exchanged in 33,843 deals.
Compared with the last trading session of August, volume dipped by six per cent, but turnover improved by 42 per cent, while the number of deals rose by 32 per cent.
Analysts noted that the heightened turnover was largely driven by significant transactions in banking and industrial stocks, although the overall decline in share prices pulled the market down.
Across the board, most key indices closed in the red:
Top 30 Index: -0.38%
Consumer Goods Index: -0.03%
Insurance Index: -0.05%
Main Board Index: -0.17%
Oil & Gas Index: -0.45%
Pension Index: -0.6%
The declines reflected sell-offs across major counters as investors opted for profit-taking, particularly in oil and gas, insurance, and banking stocks.
Out of 126 listed equities traded, only 15 recorded gains, while 33 closed in the red, with the rest remaining unchanged.
Top gainers included:
Sovereign Trust Insurance: +10% to N2.86
Scoa Nigeria: +9.83% to N6.59
Cornerstone Insurance: +7.98% to N6.90
Guinea Insurance: +7.75% to N1.53
NSL Technologies: +4.71% to N0.89
University Press Insurance: +4.17% to N1.25
On the flip side, Eterna Plc led the losers with a 10 per cent dip to N34.20, followed by:
Ellah Lakes: -10% to N12.69
Veritas Kapital Assurance: -10% to N1.89
Chams Plc: -9.56% to N2.65
Cutix Plc: -7.71% to N3.23
Tantalizer Plc: -7.26% to N2.30
Market Leaders by Volume and Value
Top traded by volume: FCMB Group (55.8m), Access Holdings (31.9m), Fidelity Bank (26.2m), NSL Technologies (22.4m), AIICO Insurance (17.7m).
Top traded by value: Aradel Plc (N5.31bn), Zenith Bank (N1.11bn), WAPCO (N0.97bn), Access Holdings (N0.84bn), GTCO (N0.83bn).
Market experts say the downturn reflects cautious investor sentiment amid Nigeria’s current macroeconomic challenges, including persistent inflationary pressures, rising interest rates, and foreign exchange volatility.
An investment analyst at CardinalStone Securities, Tunde Akinwale, noted:
“The start of September highlights the fact that investors remain wary of overexposure in equities, especially after the market’s strong year-to-date performance.
We expect bargain-hunting in the short term, but volatility will persist until there is clarity on fiscal and monetary policies.”
Another market watcher added that the performance was in line with the bearish trend recorded in late August, when the NGX shed N439 billion in market capitalisation within a single week due to sustained sell-offs in banking and industrial stocks.
Analysts project a cautious trading pattern for the rest of the week as investors await fresh corporate earnings reports and policy signals from the Central Bank of Nigeria.
The oil and gas sector, in particular, is expected to remain under pressure following fluctuations in global crude prices and uncertainty over government subsidy interventions.
Despite the current dip, experts maintain that the NGX remains one of Africa’s best-performing exchanges in 2025, buoyed by strong year-to-date returns and continued interest in blue-chip stocks.
Investors, however, are advised to diversify their portfolios and pay closer attention to companies with solid fundamentals to withstand ongoing volatility.