Stock Market Declines ₦1.37 Trillion as Profit-Taking Hits Banking Stocks

The Nigerian stock market opened the week on a bearish note on Monday as the All-Share Index (ASI) declined by 0.94 percent to close at 223,602.29 points, down from 225,722.49 recorded at the end of the previous week.

Equities market capitalisation fell from ₦145.34 trillion to ₦143.97 trillion, representing a ₦1.37 trillion loss in investor wealth, driven primarily by heavy sell-offs in banking stocks and recent rally leaders.

Market Activity

Trading activity remained strong despite the decline, with investors exchanging 678.17 million shares valued at ₦44.14 billion in 82,838 deals.

The sustained liquidity suggests that the market decline was driven by profit-taking rather than a lack of demand.

Top Gainers

Despite the broad market decline, a few stocks recorded gains:

• FGSUK2032S7: ₦110.49 → ₦123.95 | +12.18%
• Abbey Mortgage Bank Plc (ABBEYBDS): +9.26% to ₦5.90
• Zichis Agro-Allied Industries Plc (ZICHIS): +8.91% to ₦16.99
• Wema Bank Plc (WEMABANK): +8.80% to ₦34.00
• NPF Microfinance Bank Plc (NPFMCRFBK): +8.19% to ₦5.68

The gains were largely concentrated in select small-cap and mid-tier stocks, indicating rotational buying.

Top Losers

Losses were dominated by major banking and high-momentum stocks:

• Trans-Nationwide Express Plc (TRANSEXPR): -10.00% to ₦7.11
• First HoldCo Plc (FIRSTHOLDCO): -10.00% to ₦67.50
• United Bank for Africa Plc (UBA): -10.00% to ₦49.50
• Access Holdings Plc (ACCESSCORP): -9.90% to ₦28.20
• Fidelity Bank Plc (FIDELITYBK): -9.87% to ₦20.10

The sharp declines in these stocks highlight intensified profit-taking after the previous week’s strong rally.

Top Trades

Trading activity was led by Zenith Bank Plc, which recorded 76.07 million shares valued at ₦9.53 billion.

Other actively traded stocks include:

• Wema Bank Plc: ₦1.68 billion
• Access Holdings Plc: ₦1.10 billion
• Tantalizers Plc: ₦113.91 million
• AIICO Insurance Plc: ₦118.31 million

The dominance of banking stocks in trading activity indicates that institutional investors are actively repositioning rather than exiting the market.

Fixed Income and ETF Market

The bond market remained stable, with most instruments closing unchanged, indicating limited movement in fixed income securities.

The ETF segment recorded positive performance:

• STANBICETF30 gained ₦100.00
• GREENWETF rose by ₦58.89
• MERVALUE increased by ₦9.95
• VETINDETF and MERGROWTH posted moderate gains

This suggests selective capital rotation into ETF instruments amid equity market volatility.

Market Outlook

The Nigerian stock market is entering a short-term correction phase following several weeks of strong gains.

The sharp sell-off in banking stocks, which have been the primary drivers of the rally, indicates profit-taking by institutional investors.

However, the continued strength in trading value and selective gains across other sectors suggest that the broader bullish trend remains intact.

Going forward, the market is likely to experience continued volatility and consolidation, with investors rotating into undervalued sectors while locking in profits from recent winners.