Nigeria’s equities market continued its downturn yesterday, bringing its seven-day trading loss to N5 trillion, following an unprecedented sell-off that started after the market crossed the N160 trillion mark.

The market capitalisation, which rose to N160.42 trillion on August 10, fell to N155.417 trillion yesterday, shedding N5 trillion as investors took profit across major banking, consumer goods and other large-cap stocks.

The sell-off has also cost Nigeria its position as the world’s best-performing stock market, with the country dropping to third place, behind South Korea and Ghana, after a five-week run at the top.

Bloomberg data covering 92 stock exchanges showed Nigeria’s dollar-denominated year-to-date return at 65.23 per cent, against 68.52 per cent for South Korea and 66.68 per cent for Ghana as of August 14.

The unprecedented reversal from the N160 trillion mark and the loss of its global ranking have renewed concerns about the sustainability of the rally and whether investors are beginning to reposition after the strong gains recorded earlier in the year.

Executive Director of Halo Capital Management Limited, Dr Paul Uzum, said the ongoing sell-off was largely being driven by the proposed Dangote Refinery initial public offering (IPO), foreign investors’ repositioning ahead of the next general election and growing interest among domestic investors to diversify their portfolios.

Uzum explained that some foreign investors were already reducing their exposure to Nigerian equities as they positioned their portfolios ahead of the next election, with concerns over the political and economic environment influencing their investment decisions.

He added that the proposed Dangote Refinery IPO was also having an impact on the market, as investors were repositioning their portfolios ahead of the expected capital-raising exercise. According to him, some investors may be selling existing holdings to create liquidity for participation in the offer.

Uzum further noted that several local investors now consider many Nigerian equities to be appropriately priced after the strong gains recorded in the market this year. As a result, rather than continue to increase their exposure to equities at current price levels, some domestic investors are taking profit and moving part of their funds into other asset classes.

He said the development was contributing to the selling pressure currently weighing on the market, particularly as investors reassess the potential returns from equities against opportunities available in other investment instruments.

A review of the performance of selected stocks across the banking, fast-moving consumer goods and insurance sectors in the seven trading sessions between August 10 and August 19, 2026, showed that in the banking sector, Access Bank declined by 3.24 per cent, falling from N28.06 on August 10 to N27.15 kobo at the close of trading yesterday while United Bank for Africa also recorded a marginal decline, dropping by 0.54 per cent from N46.25 to N46. First HoldCo also declined from N142 to N132, representing a loss of 7.04 per cent or N10 per share.

In the fast-moving consumer goods sector, BUA Foods recorded the biggest decline, from N845.10 to N760.60 kobo, representing a 10.00 per cent loss during the period.

Honeywell Flour Mills recorded a marginal decline of 0.58 per cent, dropping from N17.30 kobo to N17.20 kobo.

The insurance sector also recorded significant losses. NEM Insurance fell by 5.21 per cent, from N31.65 kobo to N30. AIICO Insurance declined by 3.66 per cent, dropping from N4.10 kobo to N3.95 kobo AXA Mansard Insurance also recorded one of the biggest declines among the stocks falling from N13.10 to N11.90. This represents a 9.16 per cent loss.

The performance indicates renewed selling pressure across selected equities, with the declines particularly pronounced in BUA Foods, First HoldCo and AXA Mansard during the period. (The Guardian)

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