The Nigerian stock market is facing a downturn as investors pull out of key stocks. The Nigerian Exchange (NGX) opened the trading session with losses, driven by heavy selling pressure on financial stocks. Investors offloaded shares in International Breweries, Oando, and United Capital Plc, while Fidelity Bank and Jaiz Bank also saw declines.
This negative trend follows last week’s poor performance, where the market ended in the red ahead of new inflation data. Analysts predict that upcoming inflation reports will influence trading activity in the coming days, as investors weigh their options between the stock market and fixed-income securities.
By mid-day, the NGX All Share Index had dropped by 0.11%, according to a report by Alpha Morgan Capital Limited. Market analysts attribute the decline to investors selling off mid- to high-cap stocks.
Data from the exchange showed that International Breweries lost 6.91% in value, Oando declined by 3.75%, and United Capital Plc fell by 2.44%. Other declining stocks included Jaiz Bank (-1.54%) and Fidelity Bank (-0.87%).
Stockbrokers say the current sell-off reflects investor caution amid economic uncertainty, with many preferring safer investment options like bonds and treasury bills over volatile equities.
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