The Nigerian equities market opened the second half of the year on a bearish note, with investors losing approximately ₦150 billion in market value on Monday, as sentiment turned negative across major sectors.
The benchmark All-Share Index (ASI) of the Nigerian Exchange Limited (NGX) declined by 0.39% to close at 99,412.34 points, down from 99,801.88 points recorded at the previous session. The market capitalisation dropped from ₦56.49 trillion to ₦56.34 trillion, wiping out ₦150 billion in investor wealth.
Market analysts attributed the decline to profit-taking by investors and cautious positioning ahead of key macroeconomic data and earnings season, which typically shapes trading behavior in Q3.
“After a relatively strong close in June, what we’re seeing is a classic case of portfolio rebalancing,” said Bayo Adigun, a capital market analyst with Pacific Finance. “Investors are taking profits off the table while adopting a wait-and-see stance as July unfolds.”
The sell-off was led by losses in heavyweight stocks across the banking, industrial goods, and consumer sectors. Notably, shares of GTCO, Dangote Cement, and Nestlé Nigeria recorded moderate declines, contributing to the overall dip.
Market breadth was negative, with 29 decliners outpacing 16 gainers. Trading volume also declined by 11%, reflecting a drop in investor participation amid cautious sentiment.
Despite the negative start, analysts remain cautiously optimistic about the second half of the year, citing potential boosts from expected earnings reports, macroeconomic policy reforms, and foreign investor interest in undervalued assets.
“While the red start may raise concerns, it’s not unusual for markets to adjust early in the quarter,” noted Ifeoma Udoka, research head at Arvo Capital. “What matters is the trend in coming weeks, especially as financial results begin to roll in.”
Investors will be watching closely as trading continues this week, particularly for any signals from the Central Bank or economic data that could influence market direction.
