Nigerian Stock Market Loses ₦1.99 Trillion as Dangote Cement, BUA Cement Trigger Selloff
The Nigerian stock market extended its bearish run on Wednesday as heavy losses in Dangote Cement Plc, BUA Cement Plc and Geregu Power Plc erased approximately ₦1.99 trillion from investors’ portfolios.
The Nigerian Exchange Limited (NGX) All-Share Index (ASI) declined by 2.35 percent to close at 235,074.54 points, while equity market capitalisation fell to ₦150.85 trillion.
Trading activity moderated during the session as investors exchanged 488.08 million shares valued at ₦20.93 billion in 46,239 deals.
The sharp decline was largely driven by selling pressure in heavyweight industrial and power sector stocks, whose significant market capitalisation amplified the overall market loss.
Dangote Cement led the losers’ chart after declining by 10.00 percent from ₦1,070.00 to ₦963.00 per share. BUA Cement also shed 10.00 percent to close at ₦340.20, while Geregu Power dropped 10.00 percent to ₦917.40. Custodian Investment Plc lost 9.97 percent to ₦73.15 and Academy Press Plc fell 9.88 percent to ₦7.30.
Despite the weak market performance, a number of stocks recorded gains. TAJ Sukuk Series 2 advanced by 11.08 percent from ₦90.01 to ₦99.98 to emerge as the session’s top performer.
Skyway Aviation Handling Company Plc appreciated by 9.92 percent to ₦171.20, while International Energy Insurance Plc gained 9.66 percent. Tantalizers Plc rose by 6.98 percent and Omatek Ventures Plc added 5.70 percent.
Banking stocks continued to dominate trading activity. First HoldCo Plc recorded the highest traded volume with 57.39 million shares valued at ₦3.52 billion.
Access Holdings Plc followed with 36.08 million shares, while Sterling Financial Holdings Company Plc, Chams Holding Company Plc and Linkage Assurance Plc also ranked among the most actively traded equities.
Although financial sector counters remained active, the buying interest was insufficient to offset the impact of steep declines in major industrial stocks, highlighting the influence of large-cap companies on the benchmark index.
Activity in the fixed-income market remained relatively stable, with selected bond instruments recording no significant price changes during the session.
The exchange-traded fund segment posted a stronger performance. STANBICETF30 gained ₦274.24, while VSPBONDETF advanced by ₦14.89. VETBANK, VETINDETF and VETGRIF30 also closed higher, indicating continued investor interest in diversified investment products despite weakness in the broader equity market.
Market analysts noted that the combination of lower turnover and sharp declines in major index constituents suggests the latest selloff was driven more by weakness in heavyweight stocks than by widespread liquidation across the market.
The renewed pressure on Dangote Cement, BUA Cement and Geregu Power underscores the importance of large-cap industrial stocks in determining the direction of the Nigerian equity market. Their combined decline outweighed buying interest in banking stocks and contributed significantly to the day’s fall in both the benchmark index and overall market capitalisation.
Investors are expected to monitor the performance of these market-leading companies closely, as any recovery in the industrial sector could provide support for the broader market, while continued weakness may prolong the current bearish sentiment.
