The Nigerian Exchange Limited (NGX) opened the new trading week on a bearish trajectory as the market continued its downward correction following two consecutive weeks of losses.
Monday’s trading session reflected persistent investor caution and light liquidity inflow, dragging the All-Share Index (ASI) down by 0.50% to 148,781.90 points, while total market capitalization declined to ₦94.526 trillion, representing a ₦470 billion loss in market value.
Market Performance Overview
The session’s activity data showed a weaker start to the week. A total of 364.35 million shares valued at ₦11.35 billion exchanged hands in 32,564 deals, marking a notable decline in turnover compared to last Friday’s session.
The figures underscore the market’s waning momentum and the absence of strong institutional demand as traders preferred to sit on the sidelines.
The Financial Services sector continued to dominate trading by both value and volume, driven primarily by liquidity in AccessCorp, Zenith Bank, and AIICO Insurance.
However, the reduced overall participation suggested that sentiment remains cautious, especially after the market’s sharp losses in the previous week.
Market Breadth and Sentiment
Market breadth closed negative, as decliners outnumbered advancers — a clear indicator that selling pressure remained dominant. Only five equities recorded price gains compared to five top decliners that posted near-limit losses.
The pattern highlights a continued risk-off environment, where investors are locking in profits and reducing exposure amid macroeconomic uncertainty.
The breadth structure also revealed heightened volatility in the insurance segment, where some counters like Cornerstone Insurance (+8.70%) advanced strongly, while others such as AIICO and Linkage Assurance declined by nearly 10% each, indicating selective repositioning within the sector.
Gainers and Losers Analysis
The top gainers’ chart was dominated by small- and mid-cap stocks:
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Aso Savings & Loans and Deap Capital both gained over 9%, sustaining retail-driven speculative activity.
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Cornerstone Insurance (+8.70%) and Neimeth (+8.65%) rebounded after previous sessions of heavy declines, suggesting bargain hunting at lower price levels.
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Japaul Gold also appreciated by 6.70%, supported by renewed interest in mining equities following global gold price stability.
On the flip side, the top losers included a mix of financial and consumer counters:
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NAHCO (-9.95%) led the day’s selloffs, as profit-taking weighed on the aviation handling stock after prior gains.
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AIICO and Mutual Benefits both fell by 9.89%, extending the week’s weakness in the insurance sub-sector.
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R.T. Briscoe (-10.00%) and Linkage Assurance (-10.00%) also hit their respective lower limits, reflecting intensified selloffs in thinly traded counters.
Liquidity and Market Drivers
Liquidity concentration remained a defining feature of the session.
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AccessCorp led the market in trade volume (22.8 million shares), followed by Zenith Bank (21.9 million shares), which also recorded the highest value turnover at ₦1.3 billion.
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Chams and Aso Savings continued to attract retail flows, while institutional players largely stayed defensive.
The overall liquidity picture points to retail dominance and reduced institutional rotation, which typically accompany market corrections.
Fixed Income and ETF Movements
In the fixed-income space, the listed FGN Savings Bond (FGS202774) advanced by 17.99%, signaling improved interest in government-backed assets amid heightened equity volatility. Other bonds, including FGS202785 and IAO2026S1, remained flat.
Similarly, ETF activity stayed muted. MERGROWTH ETF ticked up slightly by ₦1, while other instruments such as NEWGOLD and VSPBONDETF closed unchanged. The stability in ETF and bond prices reflected a flight-to-safety sentiment, as investors rotated partially into fixed-income and low-risk instruments.
Key Takeaways
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Profit-Taking Pressure Sustains: The market’s -0.50% decline confirmed an ongoing correction phase after the 2.99% weekly loss recorded last week.
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Liquidity Thins: Total market turnover fell by over 25%, underscoring weak confidence and declining participation.
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Insurance Volatility: The sector remains fragmented, with a mix of sharp rebounds and steep declines, reflecting speculative trading.
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Banking Stability: Despite overall bearishness, tier-one banks like Zenith Bank and AccessCorp remained the most actively traded and least volatile, providing short-term support to market stability.
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Investor Rotation: The uptick in FGS202774 suggests that investors are beginning to hedge against market risk via fixed-income channels.
Outlook
The NGX’s short-term trend remains bearish to neutral as the market seeks direction after heavy selloffs. Analysts expect further sideways movement this week, with possible support emerging near the 148,000 psychological level on the ASI.
Market participants are expected to maintain a cautious stance pending new macroeconomic signals or corporate earnings catalysts.
For now, selective accumulation in fundamentally strong financial and industrial stocks may provide relative safety, while speculative counters are likely to remain volatile.
Bottom Line:
The Nigerian stock market remains under selling pressure as investors continue to reassess risk in the face of weakening momentum. While occasional recoveries may occur, sustained upside movement will depend on a rebound in liquidity, institutional participation, and broader confidence in near-term economic direction.
