N5.1trn wiped out of NGX in 4 days
The Nigerian equities market yesterday extended its bearish run with the All-Share Index declining 0.37% to settle at 242,227.31 points. The local bourse shrank as sell pressure persisted for four days straight, wiping out N5.1 trillion. The sell-offs knocked out N1.81 trillion from the Nigerian Exchange market capitalisation on Monday. On Tuesday, investors lost N478 […]
The Nigerian equities market yesterday extended its bearish run with the All-Share Index declining 0.37% to settle at 242,227.31 points.
The local bourse shrank as sell pressure persisted for four days straight, wiping out N5.1 trillion.
The sell-offs knocked out N1.81 trillion from the Nigerian Exchange market capitalisation on Monday.
On Tuesday, investors lost N478 billion, while the downward trend extended to Wednesday N2.28 trillion loss.
On Thursday, the bearish run dragged the Nigerian bourse year-to-date return down to +55.66%, erasing N580.65 billion from market capitalisation, which closed at N155.36 trillion.
Trading activity weakened considerably across the board, with volume, turnover, and deal count declining 36.24%, 34.05%, and 17.28% to 588.46 million shares, N42.27 billion, and 57,352 transactions, respectively.
Market breadth was negative at 0.8x, as 30 decliners led by MCNICHOLS, ABCTRANS, ETERNA, ARADEL, and NPFMCRFBK outpaced 24 advancers, with INTENEGINS, OMATEK, ABBEYBDS, CUTIX, and JOHNHOLT recording the most notable gains.
Sectoral performance was mostly negative, as Oil & Gas (-4.90%), Commodity (-3.28%), Insurance (-0.58%), and Consumer Goods (-0.03%) all finished in negative territory, while Industrial (+0.56%) and Banking (+0.31%) bucked the trend.
Heading into Friday’s session, stock analysts at Cowry Asset Management Limited said the market is expected to maintain its bearish tone, as continued profit-taking weighs on investor sentiment. GCR Affirms MTN Nigeria AAA Ratings, Outlook Stable
The bearish run comes amid Nigeria’s capital market’s transition to the T+1 settlement cycle.
The transition, which formally began on Monday, reduces the settlement period for securities transactions from two business days after trade execution (T+2) to one business day (T+1).
It was officially launched at a ceremony held at Nigerian Exchange Group (NGX ) in Lagos, attended by regulators, exchanges, brokers, custodians, registrars and other stakeholders.
Speaking at the event, Managing Director and Chief Executive Officer of Central Securities Clearing System (CSCS) Plc, Shehu Yahaya Shantali, described the transition as “a defining moment in the evolution of the Nigerian capital market.”
“This achievement is far more than a reduction in settlement timelines,” Shantali said. “It is a reflection of the collective ambition of our market, the strength of our institutions, and our unwavering commitment to building a more efficient, resilient, competitive and globally aligned capital market.”
Director-General of the Securities and Exchange Commission, Dr. Emomotimi Agama, described the launch as a watershed moment for the country’s financial markets.
Agama emphasised the practical benefits of the shorter settlement cycle for investors.
“What does that mean for a retail investor in Lagos, Kano or Port Harcourt who sells shares today?” he asked. “It means their cash is available tomorrow. Not in two days. Not in three. tomorrow.”
“That is capital freed for reinvestment, for consumption, for business decisions — capital that previously sat locked in the settlement pipeline for longer than necessary.”
He said T+1 would also reduce margin requirements, shorten processing times and significantly lower counterparty risk.
“Every day that passes between trade and settlement is a day in which market conditions can change, a counterparty can fail, or an operational error can cascade. T+1 closes that window,” he said.