Nigerian Stock Exchange Opens on Negative Note After Holidays, Loses ₦378 Billion

The Nigerian Stock Exchange (NGX) opened on a bearish note on Tuesday, recording a sharp loss of ₦378 billion in market capitalization as trading resumed after the public holidays.

Data from the NGX showed that the market capitalization dropped from ₦56.18 trillion at the close of the previous session to ₦55.80 trillion. Similarly, the All-Share Index (ASI) declined by 0.67 percent, closing at 100,299.48 points compared to 100,975.76 points recorded before the break.

Analysts attributed the downturn to a combination of profit-taking by investors and cautious sentiment amid macroeconomic uncertainty.

Heavy losses were recorded in major blue-chip stocks including Dangote Cement, BUA Cement, GTCO, Zenith Bank, and Nestlé Nigeria, which weighed heavily on overall market performance.

Olumide Fakolujo, a Lagos-based capital markets analyst, said the decline was largely expected following recent gains and the extended holiday break.

“The market had rallied significantly before the holiday, and what we’re seeing now is largely a round of profit-taking, especially in blue-chip stocks.

“Investors are also digesting mixed global signals and the direction of fiscal and monetary policies domestically,” he said.

Market activity was also subdued, with a decline in both trading volume and value. A total of 314.25 million shares valued at ₦5.76 billion were traded in 6,207 deals, indicating reduced investor participation.

Sector performance was mixed, though the banking and industrial goods sectors recorded the steepest losses.

The NGX Oil & Gas Index bucked the trend slightly, supported by gains in a few energy stocks such as Seplat Energy and Oando.

Despite the downturn, analysts remain cautiously optimistic about the medium-term outlook, pointing to anticipated half-year corporate earnings reports and continuing economic reforms.

Chika Madueke, a financial analyst at Nova Finance, noted that “the medium to long-term outlook remains positive if we see stability in FX markets, improved inflation data, and a supportive monetary stance from the CBN.”

The ₦378 billion drop in market value serves as a stark reminder of the volatility of the equities market, especially in periods of policy uncertainty and global economic pressure.

However, experts believe that strategic investors could still find value in fundamentally strong stocks as the market adjusts in the weeks ahead.