Nigerian Stock Market Loses Over N2 Trillion in One Week as Selloff Deepens

The Nigerian stock market extended its August correction last week as sustained profit-taking erased more than N2.09 trillion from investors’ wealth.

Data from the Nigerian Exchange (NGX) showed that equity market capitalisation declined from N156.624 trillion at the close of trading on August 14 to N154.534 trillion on August 21, representing a loss of approximately N2.09 trillion in five trading sessions.

The benchmark NGX All-Share Index (ASI) also fell 1.35 percent during the week, closing at 239,351.16 points, down from 242,619.20 points recorded the previous Friday.

The decline extended the market’s August downturn as investors continued to lock in profits across several sectors following months of strong price appreciation.

The week’s losses came despite continued investor participation in the market.

A total of 6.242 billion shares valued at N157.764 billion changed hands in 186,496 deals, compared with 12.153 billion shares worth N176.058 billion traded the previous week.

Although trading volume fell by nearly half, the value of transactions remained above N150 billion, suggesting institutional investors remained active even as the market retreated.

Financial services stocks continued to dominate market activity.

The sector accounted for 5.594 billion shares worth N56.431 billion, representing 89.62 percent of total trading volume and 35.77 percent of total transaction value during the week. ICT ranked second by value traded, followed by the services sector.

Trading activity was heavily concentrated in a handful of insurance stocks. Fortis Global Insurance Plc, Lasaco Assurance Plc and Consolidated Hallmark Holdings Plc jointly accounted for 4.168 billion shares valued at N9.249 billion, representing 66.77 percent of the total volume traded on the Exchange during the week.

The selloff was broad-based across sectoral indices.

The NGX Oil & Gas Index recorded the steepest decline, falling 4.64 percent, followed by the NGX Insurance Index, which dropped 3.75 percent. The NGX Banking Index lost 2.92 percent, while the NGX Consumer Goods Index declined 2.36 percent.

The NGX Premium Index, which tracks some of the market’s largest and most liquid companies, also slipped 0.82 percent during the week.

On the price movement table, Haldane McCall Plc emerged as the week’s best-performing stock with a 32.30 percent gain. Other notable advancers included Trans-Nationwide Express Plc, Dangote Sugar Refinery Plc, Cadbury Nigeria Plc and UAC of Nigeria Plc.

However, the number of declining stocks significantly outweighed gainers. International Energy Insurance Plc led the losers with a 27.26 percent decline, followed by Fortis Global Insurance Plc, Royal Exchange Plc, Red Star Express Plc, UPDC Plc, Nigerian Exchange Group Plc, NEM Insurance Plc and Aradel Holdings Plc.

Beyond price movements, the week also witnessed notable corporate actions.

The NGX admitted 15 billion additional ordinary shares of Veritas Kapital Assurance Plc following the completion of its private placement, increasing the insurer’s issued share capital to 28.87 billion shares.

The Exchange also suspended trading in Universal Insurance Plc after the National Insurance Commission (NAICOM) revoked the company’s operating licence and appointed a liquidator.

Despite the market’s continued decline, the strong transaction value and sustained institutional activity suggest liquidity has not exited the market.

Instead, investors appear to be rotating capital while taking profits in stocks that recorded significant gains during the first seven months of the year.

Market participants will now look to upcoming corporate disclosures, macroeconomic developments and bargain-hunting opportunities to determine whether the recent correction marks the beginning of a broader consolidation phase or presents an attractive entry point for long-term investors.