LAGOS, June 8 – The Nigerian stock market closed the first trading week of June in negative territory after a broad wave of profit-taking erased N4.9 trillion (approximately $3.6 billion) in investor wealth, reversing gains accumulated during previous trading sessions.
The decline pushed the market capitalization of the Nigerian Exchange Limited (NGX) down to N155.593 trillion (approximately $114.20 billion) from N160.508 trillion recorded a week earlier.
The benchmark NGX All-Share Index also recorded a significant decline, falling 3.1% to close at 242,593.31 points compared with 250,385.47 points in the previous week.
The market downturn reflected weaker investor sentiment as traders sold positions across several major sectors following months of strong equity market performance.
Selling pressure was evident across banking, oil and gas, industrial goods, consumer goods and insurance stocks, contributing to the market’s broad-based weakness.
Several large-cap companies weighed heavily on overall market performance.
Among the biggest decliners were First HoldCo Plc, which fell 11.4%, BUA Cement Plc, down 10%, and Aradel Holdings Plc, which declined 9.5%.
Other notable losses included MTN Nigeria Communications Plc, which shed 5.5%, and Lafarge Africa Plc, which declined 3.5%.
Despite the market selloff, trading activity strengthened considerably during the week.
Transaction volume increased by 71.7% while the value of trades rose by 67.9% compared with the previous week, indicating elevated investor activity amid portfolio adjustments.
Sectoral performance remained largely negative.
The Oil and Gas Index recorded the steepest decline, falling 5.2%, followed by the Industrial Goods Index, which dropped 4.4%.
The Banking Index lost 3.4%, while the Insurance and Consumer Goods indices declined 1.9% and 0.7%, respectively.
Market analysts attributed the downturn primarily to profit-taking and portfolio rebalancing after the strong rally witnessed in recent months.
Investors appear to be locking in gains amid concerns over stretched valuations in some market segments, while awaiting new catalysts that could influence market direction.
Looking ahead, analysts expect mixed trading conditions as bargain hunters seek opportunities in undervalued stocks while continued profit-taking may keep pressure on the broader market.
Market sentiment is expected to remain closely tied to corporate earnings developments, macroeconomic indicators and investor appetite for risk in Africa’s largest economy.
