The Nigerian stock market closed lower again last week, making it the third
consecutive week decline, pressured by profit-taking in blue-chip stocks.
However, the latest loss amounting to 1.8 trillion indicates that the negative
position is moderating.
Three weeks ago the market took a major hit at N5.6 trillion loss, and the
following week the loss position was N2.4trillion.
Analysts stated that the sustenance of sell off of shares was an extension of
market corrective trend across key sectors.
Analysis of trading last week shows that the Nigerian Exchange Limited, NGX
market capitalisation, which represents the total value of stocks listed on the
Exchange, closed at N147.102 trillion from N148.905 trillion the previous
week.
Similarly, the NGX All-Share Index, ASI, another major market indicator
nosedived by 1.2% to close at 229,240.34 points from 232,049.02 points the
previous week.
Specifically, MTN Nigeria shed -9.6%, Dangote Cement declined -7.5%.
Aradel -10.0%, WAPCO -8.3%, Zenith Bank -7.1% and GTCO -5.4%, to
significantly drag down the NGX ASI.
Consequently, the Month-to-Date and Year-to-Date, YtD, returns settled at
1.6% and 47.3%, respectively.
Meanwhile, reacting to market projection for the second half 2026, H2’26,
Chief Executive Officer of HighCap Securities Limited, David Adonri,
expressed optimism that the Nigerian equities market will rebound in the second
half of 2026 despite the recent correction which had led to a bearish run. He
also projected monetary tightening by the Central Bank of Nigeria in H2’26.
He noted that politicians and some high net worth investors are selling off
shares for cash ahead of the general election.
Speaking during a market review for the first quarter of 2026 and outlook for
the second half of the year at the Capital Market Correspondents forum held
Tuesday, in Lagos, Adonri said the recent decline in share prices in June 2026
followed an exceptional rally that delivered about 62 per cent returns in the first
five months of the year, making the Nigerian stock market one of the world’s
best-performing equity markets.
According to him, the current downturn represents a normal market correction
rather than a structural weakness, stressing that the country’s macroeconomic
fundamentals remain supportive of long-term growth.
“The market is simply realigning stock prices with the underlying fundamentals
of listed companies after an extended rally,” he said.
Adonri noted that both the equity and debt markets performed strongly in the
first half of the year, with investors benefiting simultaneously from capital gains
in equities and attractive yields in fixed-income securities due to elevated
interest rates.
He also highlighted the resurgence of the primary market, revealing that about
N6.95 trillion was raised through new issues during the first half of the year,
compared with significantly lower levels in previous years. According to him,
“the capital raised is financing productive sectors of the economy rather than
government activities.”
He attributed renewed investor confidence to improvements in key
macroeconomic indicators, including stronger foreign exchange reserves,
increased government revenue, higher oil production and improved sovereign
credit ratings by international rating agencies.
Adonri said: “Foreign portfolio investment also strengthened during the
period, reflecting growing international confidence in Nigeria’s economic
reforms.”
Looking ahead, he projected a gradual recovery in the equities market as
companies begin releasing half-year financial results, adding that strong
corporate earnings could stimulate renewed demand for stocks.
However, he warned that interest rates are likely to remain relatively high
because of inflationary pressures and possible monetary tightening by the CBN.