NGX loses N262bn as banking selloff trims market after 60% rally

Nigerian equities lost N261.92 billion on Friday as investors took profits in major banking stocks, pulling the Nigerian Exchange (NGX) All-Share Index down 0.16 per cent even as the number of transactions increased sharply.

The All-Share Index fell 403.40 points to close at 250,808.27 points, compared with 251,211.67 points at the previous session. Market capitalisation consequently declined from N163.10 trillion to N162.84 trillion.

The retreat came after a prolonged rally that had taken the market above the 250,000-point mark, leaving investors increasingly sensitive to profit-taking and valuation adjustments.

Trading remained active despite the decline. A total of 557.12 million shares changed hands in 53,370 deals, while the number of deals increased 20.21 per cent from 44,398 previously. Trading volume, however, fell 45.91 per cent from 1.03 billion shares.

Access Holdings accounted for the bulk of the day’s volume, with 183.56 million shares traded. The stock data on the NGX confirmed the 183.56 million-share turnover, underscoring the heavy activity around the financial-services counter.

The main drag on the market was the banking sector. The NGX Banking Index fell 0.97 per cent, with First HoldCo declining 6.16 per cent, NGX Group losing 6.85 per cent and VFD Group dropping 6.90 per cent. Losses in United Bank for Africa and Wema Bank added to the sector’s weakness, outweighing gains in Fidelity Bank and GTCO.

The banking selloff came despite the sector having been one of the strongest drivers of the broader equities rally in 2026, as investors responded to stronger earnings, recapitalisation and dividend prospects.

The weakness in large financial stocks therefore had an outsized effect on the benchmark, illustrating the increasing sensitivity of the market after its substantial year-to-date gains.

Market breadth was neutral, with 26 gainers matching 26 decliners, suggesting that the decline was concentrated rather than a broad-based sell-off.

Insurance stocks provided the strongest support, with the NGX Insurance Index rising 1.21 per cent to 1,100.30 points. AIICO Insurance gained the maximum 10 per cent, while AXA Mansard and Consolidated Hallmark also advanced.

The Consumer Goods Index slipped 0.03 per cent as PZ Cussons fell 9.91 per cent and Honeywell Flour Mills declined 3.61 per cent, offsetting gains in International Breweries and Champion Breweries.

Industrial Goods and Oil and Gas stocks were unchanged, while the NGX Lotus Islamic Index edged up 0.07 per cent.

The latest decline leaves the market with a year-to-date gain of about 56 per cent, meaning investors are now weighing the potential for further earnings growth against the gains already embedded in share prices.

That dynamic is particularly important for banks, which have enjoyed a major re-rating following the completion of the industry’s recapitalisation but now face greater scrutiny over whether earnings, dividends and asset quality can support current valuations.

Friday’s session therefore points to a market undergoing selective profit-taking rather than a wholesale retreat. With market capitalisation still above N162 trillion, the direction of major banking counters and the ability of corporate earnings to sustain elevated valuations will remain central to the next phase of the NGX rally.