The Nigerian stock market recorded a third straight weekly decline as continued profit-taking in blue-chip stocks weighed on investor sentiment, although the latest losses were smaller than in the previous two weeks.
Trading data from the Nigerian Exchange Limited (NGX) showed that market capitalisation fell by ₦1.8 trillion, closing at ₦147.102 trillion, down from ₦148.905 trillion a week earlier. The decline followed losses of ₦5.6 trillion three weeks ago and ₦2.4 trillion the following week, suggesting the pace of the correction is slowing.
Analysts said the sustained sell-off reflects an ongoing market correction across major sectors. The NGX All-Share Index (ASI) also dropped by 1.2 per cent, ending the week at 229,240.34 points, compared with 232,049.02 points previously.
Among the biggest drags on the Nigerian stock market were MTN Nigeria, which declined by 9.6 per cent, Dangote Cement by 7.5 per cent, Aradel by 10.0 per cent, WAPCO by 8.3 per cent, Zenith Bank by 7.1 per cent, and GTCO by 5.4 per cent. Despite the recent downturn, the market’s month-to-date and year-to-date returns stood at 1.6 per cent and 47.3 per cent, respectively.
Looking ahead, HighCap Securities Limited Chief Executive Officer David Adonri expressed confidence that the Nigerian stock market would recover in the second half of 2026. He described the recent decline as a normal correction after the market delivered about 62 per cent returns during the first five months of the year.
Adonri also said politicians and some high-net-worth investors were selling shares to raise cash ahead of the general election. He added that stronger foreign exchange reserves, improved government revenue, higher oil production and better sovereign credit ratings have strengthened investor confidence.
Analysts at Cordros Capital also expect market sentiment to improve as investors gradually return to fundamentally strong stocks ahead of the half-year earnings season. However, they warned that high yields on government securities and expected primary market activities could continue to compete for investor funds.
Do you expect the Nigerian stock market to rebound strongly in the second half of 2026?
