Kayode Tokede
The Nigerian stock market in the last two days has depreciated by N2.93 trillion amid massive investors profit-taking in listed blue chip companies quoted on the Nigerian Exchange Limited (NGX).
The stock market that historically crossed the N160trillion mark when it gained N1.91 trillion or 1.2 per cent in the opening of trading activities this week has witnessed negative sentiment by investors for the last two days.
Specifically, the market capitalisation on Wednesday closed for trading at N157.494 trillion, about N2.92 trillion or 1.82 per cent drop from N160.422 trillion it opened for trading on Tuesday.
The breakdown revealed that investors lost N1.76 trillion on Wednesday as profit taking and renewed selling pressure triggered a broad market decline, while the NGX All-Share Index (ASI) lost 2,756.48 basis points or 1.12 per cent to close at 243,967.09 basis points.
The downturn was driven by price depreciation in large and medium capitalised stocks amongst which are; BUA Foods, Unilever Nigeria, HBM Nigeria, UACN and Zenith Bank.
The stock price of BUA Foods dropped by 10 per cent or N84.50 per share to close at N760.60 per share.
On Tuesday, the stock market closed the trading session on a bearish note, as losses in MTN Nigeria Communications (MTNN) Plc and 25 others caused the overall capitalisation to close lower by N1.17 trillion.
The stock price of the telecommunication company depreciated by 4.73per cent or N40 per share to close at N805.00 per share on NGX.
As a result, the NGX ASI declined by 1,806.18 basis points or 0.73 per cent, to close at 246,723.57 basis points.
Amid the downward trend, the stock market in its Year till Date (YtD) performance dropped to 56.78per cent as of August 12, 2026.
Analysts had warned that extremely weak market breadth leaves the rally vulnerable, with banking stocks now the sole swing factor. While strong half year (H1) 2026 earnings and recapitalisation activity should support financials, any loss of momentum by the banking heavyweights could trigger a broad market reversal.
Speaking on market outlook for this week, Cordros Securities Limited said, “we expect trading to remain choppy as investors continue to selectively rotate into counters supported by strong earnings momentum, robust cash flow generation and attractive interim dividend prospects.
Also, Cowry Assets Management Limited expected the Nigerian stock market to remain cautiously optimistic in the coming week as investors continue to position in fundamentally sound stocks ahead of the earnings season.
The firm, however , noted that, profit-taking in recently appreciated counters and the mixed performance across sectors could limit the pace of gains.
“Market sentiment is likely to remain driven by corporate earnings releases, dividend expectations, and developments in the macroeconomic environment, particularly movements in interest rates and fixed-income yields. Consequently, we anticipate continued sector rotation, with investors favouring fundamentally strong banking and other quality large-cap stocks, while maintaining a selective,” it added.