Equities market loses N256bn as five-day sell-off tests investor c

Investors in Nigerian equities lost another N256 billion on Tuesday as the Nigerian Exchange (NGX) extended its decline to five consecutive trading sessions, with the latest sell-off pushing down banking stocks and reducing market activity.

The NGX All-Share Index fell 0.16 per cent, or 394.36 points, to close at 250,273.50 points, while market capitalisation declined from N162.75 trillion to N162.50 trillion.

The five-day decline, which began on September 29, comes after the market delivered a gain of more than 60 per cent earlier in the year, increasing the sensitivity of investors to profit-taking and valuation concerns.

Trading activity also weakened significantly. Market volume fell 33.83 per cent to 579.17 million shares from 875.26 million, while the number of deals declined 23.83 per cent to 40,979.

The fall in turnover is important because it suggests that the latest correction was accompanied by reduced market participation rather than a rush for the exits across the entire market.

Banking stocks were the biggest drag on the market. The NGX Banking Index fell 1.25 per cent to 2,653.93 points, with First HoldCo declining 5.09 per cent, Ecobank Transnational Incorporated losing 2.72 per cent and Wema Bank falling 1.43 per cent.

Access Holdings remained the most traded stock, with 192.58 million shares exchanged in 1,887 deals, although the stock closed down 0.49 per cent at N30.30.

Other heavily traded banking stocks included United Bank for Africa, Zenith Bank, Fidelity Bank and Guaranty Trust Holding Company. Fidelity Bank stood out with a 3.42 per cent gain to N24.20 despite the broader weakness in the banking index.

The market’s negative breadth reinforced the bearish tone, with 34 stocks declining against 26 gainers.

However, the correction was not broad-based across all sectors. The insurance index gained 0.53 per cent, supported by Sovereign Trust Insurance, which rose 8.23 per cent, and Coronation Insurance, up 7.69 per cent.

Consumer Goods stocks slipped 0.04 per cent, while the Industrial and Oil and Gas indices were virtually unchanged.

The latest decline has done little to erase the market’s strong 2026 performance, but it raises an important question about how investors will position portfolios after the substantial gains recorded this year.

With the All-Share Index still around the 250,000-point level, investors are increasingly likely to demand stronger earnings, dividends and business fundamentals to justify further price appreciation.

The banking-sector weakness is particularly significant because banks have been among the biggest beneficiaries of the 2026 equity rally and remain central to market liquidity. A sustained correction in the sector could therefore have a disproportionate effect on the wider market.

At the same time, the market’s resilience remains evident in pockets of buying interest, with 26 stocks still recording gains during the session.

The latest performance therefore looks more like a re-pricing and profit-taking phase than a wholesale loss of investor confidence. But with equities already having delivered exceptionally strong returns this year, the ability of corporate earnings to keep pace with valuations will be crucial to determining whether the current five-day decline is a temporary correction or the beginning of a deeper market reset.