By Boluwatife Oshadiya | May 25, 2026
Key Points
- NGX market capitalisation declined by ₦366 billion week-on-week to close at ₦160.08 trillion
- Banking stocks helped limit broader losses as investors sold off major counters across sectors
- Trading activity weakened sharply with deal volume and value all recording double-digit declines
Main Story
The Nigerian equities market closed lower last week as sustained sell pressure across major counters dragged the Nigerian Exchange (NGX) into negative territory, wiping out approximately ₦366 billion in investor value.
The NGX All-Share Index (ASI) declined by 0.25 percent week-on-week to settle at 249,712.37 points, while market capitalisation fell to ₦160.08 trillion amid cautious trading sentiment and weakening investor appetite.
Market analysts at Cowry Asset Management Limited attributed the downturn to fading earnings season momentum and increased profit-taking activity in previously rallied stocks. The decline also moderated the market’s year-to-date return to 60.47 percent.
Trading activity weakened significantly during the week as investors exchanged 3.87 billion shares valued at ₦161.72 billion across 335,326 deals. This represented declines of 48.57 percent in traded volume, 55.07 percent in value traded, and 15.89 percent in transaction count.
Market breadth closed negative at 0.81x after 53 stocks recorded losses compared to 43 gainers, underscoring selective buying interest across the market.
Among top gainers, ABCTRANS surged by 59.3 percent, followed by UPL which advanced 25 percent. JAPAULGOLD rose 22 percent, while SKYAVN and EUNISELL gained 20.3 percent and 20 percent respectively on renewed investor demand for mid- and low-cap stocks.
On the losers’ chart, SOVRENINS dropped 18.5 percent, RTBRISCOE declined 16.9 percent, while UPDCREIT, ABBEYBDS, and NB recorded losses of 14.3 percent, 11.9 percent, and 10.1 percent respectively.
Sectoral performance closed mixed. The Banking Index emerged as the strongest performer with a 1.11 percent gain driven by buying interest in STANBIC, ZENITHBANK, and FIDELITYBK shares. Consumer Goods rose marginally by 0.24 percent, while Oil and Gas edged higher by 0.07 percent.
However, the Insurance Index lost 1.77 percent amid sell-offs in MANSARD, LINKASSURE, and SOVRENINS. Industrial Goods also declined 1.24 percent as weak sentiment around CAP, BERGER, and TRIPPLE G offset gains in WAPCO and CUTIX.
“The equities market is likely to remain mixed and cautious in the near term as weak sentiment and profit-taking continue to influence trading activity,” Cowry Asset Management Limited said in its market commentary.
The Issues
The latest market decline highlights growing investor caution despite strong year-to-date gains on the NGX. Analysts said elevated yields in the fixed-income market continue to divert institutional and retail capital away from equities, especially as Treasury bill and bond yields remain attractive.
The slowdown in trading activity also reflects reduced liquidity and weaker market participation following the peak of corporate earnings season. With fewer earnings catalysts available, investors are becoming increasingly selective, focusing mainly on fundamentally strong banking and energy stocks.
Macroeconomic uncertainty, including inflationary pressure, exchange rate concerns, and tight monetary conditions, continues to shape investment decisions across the domestic bourse.
What’s Being Said
“Selective buying could persist in fundamentally strong stocks, particularly within the banking and oil and gas sectors,” analysts at Cowry Asset Management Limited stated.
“The decline in market breadth and trading activity suggests investors are becoming more defensive in positioning,” said Ayodeji Ebo, Managing Director of Optimus by Afrinvest.
“Higher fixed-income yields are still competing aggressively with equities for investor capital,” said Johnson Chukwu, Chief Executive Officer of Cowry Asset Management.
What’s Next
- Investors are expected to monitor upcoming macroeconomic data releases, particularly inflation and exchange rate trends
- Analysts expect stock-specific trading to dominate the market in the short term
- Banking and oil and gas stocks are likely to continue attracting selective institutional demand amid broader market caution
The Bottom Line:
Nigeria’s stock market remains fundamentally resilient, but weakening liquidity and persistent macroeconomic uncertainty are limiting broad-based investor confidence. Unless new catalysts emerge, the NGX is likely to remain volatile with gains concentrated in a narrow group of fundamentally strong stocks.
