The Nigerian equities market reversed Monday’s gains on Tuesday as investors booked profits in First HoldCo and GTCO, even as less than expected half year result in Nestlé Nigeria Plc triggered sell off, wiping N599 billion off market capitalisation despite a sharp increase in trading activity.
- +Nigerian equities shed N599 billion as Nestlé, First HoldCo drag market lower
The benchmark NGX All-Share Index (ASI) declined 0.38% to close at 244,802.83 points, down from 245,730.53 points, while market capitalisation fell to N158.02 trillion, representing a loss of approximately N598.83 billion.
The benchmark NGX All-Share Index (ASI) declined 0.38% to close at 244,802.83 points, down from 245,730.53 points, while market capitalisation fell to N158.02 trillion, representing a loss of approximately N598.83 billion.
The market’s year-to-date return moderated to 57.32%, while the month-to-date return slipped into negative territory at -0.2%, reflecting renewed selling pressure across large-cap banking and consumer goods stocks.
Tuesday’s decline was led by renewed profit-taking in heavyweight banking and consumer goods stocks, with Nestlé Nigeria (-2.8%), First HoldCo (-3.0%), UBA (-2.2%) and GTCO (-0.8%) accounting for much of the downward pressure on the benchmark index.
Market sentiment remained firmly negative as only 13 stocks advanced against 40 decliners, underscoring broad-based selling across the market.
Despite the bearish closing, trading activity strengthened considerably.
Total volume traded surged 69.25% to 1.56 billion shares, although the value of transactions fell 24.09% to N28.73 billion, suggesting that market activity was driven largely by lower-priced stocks.
Sectoral performance was predominantly negative.
The Oil & Gas Index recorded the sole marginal gain of 0.05% while the Commodity Index edged up 0.01%. The Industrial Goods Index remained unchanged.
Tuesday’s decline suggests investors temporarily shifted toward profit-taking after recent gains in large-cap banking and consumer goods stocks, even as trading volumes rose sharply.
The disconnect between higher trading volume and lower transaction value indicates increased activity in relatively lower-priced equities rather than aggressive accumulation in blue-chip stocks.
Looking ahead, market participants are expected to focus on the ongoing release of half-year corporate earnings, which could provide fresh catalysts for fundamentally strong stocks.
Analysts at Cowry Asset Management expect the market to regain positive momentum as more companies release their H1 2026 financial results, with stronger earnings likely to stimulate renewed buying interest and improve overall investor sentiment.
