NGX investors lose ₦984bn as sell-off hits oil and and gas sector and others

By Philippine Duru

philippineobetoduru@gmail.com

08034905774

The Nigerian stock market closed lower on Monday, with investors losing approximately ₦984 billion as widespread profit-taking in banking, oil and gas, and conglomerate stocks dragged key market indicators into negative territory.

At the close of trading on the Nigerian Exchange (NGX), the benchmark All-Share Index (ASI) declined by 0.63 per cent to settle at 243,204.73 points, reflecting bearish sentiment across major sectors of the market.

The downturn also impacted the overall value of listed equities, as market capitalization fell to ₦155.99 trillion, erasing nearly ₦1 trillion from investors’ holdings in a single trading session.

The losses were largely driven by sustained sell pressure in highly capitalized stocks, particularly within the banking and oil and gas sectors, which have been among the market’s strongest performers since the beginning of the year.

Sectoral performance showed that the NGX Oil and Gas Index and the NGX Banking Index recorded the steepest declines, as investors moved to lock in gains following months of strong price appreciation. Conglomerate stocks also came under pressure, contributing significantly to the overall market downturn.

Market analysts attributed the decline to profit-taking activities by investors seeking to capitalize on the substantial gains recorded in recent months. The Nigerian equities market has maintained a remarkable upward trajectory in 2026, with the year-to-date return still standing at 56.29 per cent despite the latest setback.

“The market is witnessing a correction after an extended bullish run. Investors are rebalancing portfolios and taking profits in stocks that have delivered significant returns,” analysts said.

Trading activity remained relatively active, although market breadth favored decliners, indicating that losses were spread across a broad range of stocks. The bearish sentiment overshadowed gains recorded in a handful of counters.

Analysts believe investors are increasingly adopting a cautious approach ahead of key economic and corporate events, including the release of half-year earnings reports, inflation data, and monetary policy decisions that could influence market direction in the coming weeks.

Despite Monday’s decline, market fundamentals remain supportive, with expectations that strong corporate earnings, ongoing banking sector recapitalization efforts, and improving investor confidence could continue to provide support for equities over the medium term.

Market participants are expected to closely monitor developments in the broader economy and corporate sector as they seek fresh catalysts that could determine the next phase of market movement.

While the nearly ₦1 trillion loss underscores the volatility currently characterizing the market, analysts maintain that the strong year-to-date performance reflects continued investor confidence in Nigerian equities and the long-term growth prospects of listed companies.