The Nigerian stock market sustained a significant downturn last week, with investors losing approximately N2.2 trillion over four consecutive trading sessions. The bearish trend persisted through to Friday, accentuated by profit-taking in heavyweight equities and a monetary policy decision by the Central Bank of Nigeria (CBN).
On Friday, market capitalisation fell by 0.38 percent, or N475 billion, closing at N123.763 trillion, down from N124.238 trillion at the open. This followed daily losses of N1.141 trillion, N74 billion, and N515 billion on Tuesday, Wednesday, and Thursday, respectively. The All-Share Index mirrored this decline, dropping 741.03 points (-0.38 percent) to settle at 192,826.78, reducing the year-to-date return to 23.91 percent.
A key catalyst for the sustained sell-off was the CBN’s decision to cut the benchmark interest rate by 50 basis points to 26.5 percent during the week. Analysts noted this move triggered significant profit-taking, particularly in large-cap stocks.
Despite the overall negative performance, market breadth was positive on Friday, with 39 stocks advancing against 25 decliners. Sovereign Trust Insurance led the gainers, rising 9.95 percent to N2.21. Other notable risers included RT Briscoe, NGX Group, Ellah Lakes, and Omatek.
On the losing side, Mecure recorded the steepest fall, shedding 9.97 percent to close at N75.85. It was followed by Meyer, Daar Communications, Champion Breweries, and Dangote Cement. Trading activity also weakened; total volume declined by 5.15 percent to 823.83 million shares, valued at N34.75 billion across 63,759 deals. Fortis Global Insurance dominated volume with 146.62 million shares (17.80 percent of total), while Aradel accounted for the highest trade value at N7.14 billion (20.54 percent).
The four-day loss underscores the market’s sensitivity to monetary policy shifts and short-term portfolio rebalancing. The combination of a rate cut and concentrated selling in blue-chip stocks erased substantial market value, even as a minority of stocks found favour with investors. The performance highlights a cautious and volatile trading environment as market participants adjust to the new interest rate regime and broader economic signals.
