The Nigerian equities market extended its losing streak for a second consecutive week as sustained sell-offs in heavyweight stocks and weaker trading activity wiped out about N366 billion in market capitalisation.
Data from the Nigerian Exchange (NGX) showed that the All-Share Index (ASI) declined by 0.25 per cent week-on-week to close at 249,712.37 points, compared to 250,330.92 points in the previous week.
As a result, market capitalisation fell by 0.23 per cent to N160.08 trillion, reflecting broad-based profit-taking and cautious investor positioning.
The downturn occurred amid a high-interest-rate environment, which continues to make fixed-income instruments more attractive relative to equities.
Trading activity also dropped sharply during the week, with investors exchanging 3.88 billion shares valued at N161.76 billion in 334,745 deals, compared to 7.77 billion shares worth N374.04 billion in 402,945 deals the previous week.
The decline in volume and value signalled reduced market participation as investors adopted a more selective investment approach.
Market breadth weakened significantly, with 55 stocks recording losses, 38 gaining, and 53 closing flat. This marked a reversal from the previous week, when 74 stocks advanced against 24 decliners.
Analysts at Cowry Asset Management attributed the negative performance to widespread losses in large-cap stocks, noting that investor sentiment remained subdued.
They added that trading activity reflected “limited and highly selective buying interest,” with declines across key indicators such as volume, deals, and transaction value.
Sectoral performance was mixed, although losses in major indices outweighed gains.
The NGX Banking Index rose by 1.11 per cent, supported by buying interest in stocks such as Fidelity Bank, Zenith Bank, and Stanbic IBTC Holdings.
The NGX AFR Bank Value Index also gained 1.47 per cent, while the NGX Premium Index added 0.33 per cent.
The oil and gas sector recorded a marginal gain of 0.07 per cent, while the NGX Growth Index advanced by 1.57 per cent.
On the downside, the insurance index fell by 1.77 per cent, while industrial goods declined by 1.24 per cent. Consumer goods stocks also dropped by 0.84 per cent.
The financial services sector remained the dominant driver of market activity, accounting for 62.19 per cent of total traded volume and 43.10 per cent of transaction value.
A total of 2.41 billion shares worth N69.71 billion were traded in the sector.
Trading in Fidelity Bank, Sterling Financial Holdings Company, and Access Holdings alone accounted for 1.09 billion shares valued at N19.53 billion, representing 28.18 per cent of total market volume.
Top gainers for the week included Associated Bus Company, which rose 44.82 per cent, followed by Academy Press, University Press, International Energy Insurance, and Learn Africa.
On the losers’ chart, Sovereign Trust Insurance led with a 22.45 per cent decline, while Trans-Nationwide Express, CAP, Berger Paints, and RT Briscoe also recorded losses.
The weak market performance came shortly after the Central Bank of Nigeria’s Monetary Policy Committee retained the Monetary Policy Rate at 26.5 per cent, maintaining a tight stance to curb inflation.
Analysts say elevated fixed-income yields and macroeconomic uncertainty continue to push investors toward defensive positioning, limiting broad-based demand for equities.
Despite recent losses, the NGX has maintained strong year-to-date performance in 2026, with the All-Share Index returning 60.47 per cent.
Market watchers expect trading to remain largely stock-specific in the near term as investors weigh earnings outlooks, monetary policy direction, and sector-specific opportunities.
However, they note that cautious sentiment and periodic profit-taking are likely to persist amid ongoing macroeconomic pressures.
