Nigeria’s equities market lost about US$1.3 billion in investor value on Monday as profit-taking across major blue-chip stocks triggered a broad selloff, dragging key market indicators sharply lower at the start of the new trading month.
The Nigerian Exchange (NGX) All-Share Index fell 1.13 percent to close at 247,560.66 points, reversing recent gains and reducing the market’s year-to-date return to 59.09 percent.
Market capitalisation dropped to 158.7 trillion naira from the previous session, reflecting widespread declines across banking, industrial and energy stocks.
The downturn was driven largely by heavy losses in major bellwether equities, including BUA Cement, which hit the maximum daily decline of 10 percent. Other notable losers included First HoldCo, Zenith Bank and Oando, all of which recorded declines amid sustained selling pressure.
Analysts attributed the selloff to investors locking in gains after months of strong market performance, which had been supported by robust corporate earnings, dividend payouts and renewed foreign portfolio inflows.
Sector performance was broadly negative, with the industrial goods index recording the steepest fall of 3.85 percent, dragged down by cement stocks. The banking index declined 1.49 percent, while oil and gas stocks slipped 0.23 percent.
In contrast, the insurance index rose 0.79 percent, while consumer goods posted a marginal gain of 0.02 percent, offering limited relief to the overall market.
Market breadth remained firmly negative, with 37 stocks declining compared to 22 gainers, underscoring the dominance of selling pressure.
Trading activity showed mixed signals. While volume traded fell by 6.38 percent, turnover rose slightly by 1.96 percent to 44.28 billion naira, suggesting continued investor interest in higher-value counters.
ABBEY Mortgage Bank was the most actively traded stock by volume, while Aradel Holdings led in value traded with transactions worth 6.31 billion naira.
Despite the sharp correction, market operators described the downturn as a normal consolidation phase following an extended rally in 2026.
Analysts expect near-term volatility to persist as investors continue portfolio rebalancing, though they note that underlying fundamentals remain supported by improving corporate earnings and ongoing economic reforms.
The NGX had posted strong gains over the first five months of the year, driven by optimism around macroeconomic stabilisation efforts and increased participation from foreign investors.
Market watchers will now look to upcoming trading sessions to determine whether sentiment stabilises or the correction deepens further.
