Nigeria’s equities market suffered a sharp sell-off on Tuesday, erasing N1.88 trillion from investors’ wealth as heavy losses in banking and insurance stocks dragged the benchmark index down 1.17 per cent.
The Nigerian Exchange Limited All-Share Index (ASI) fell to 244,802.11 points from the previous session, moderating its year-to-date (YTD) return to 57.31 per cent from 59.18 per cent.
Market capitalisation consequently declined to N158.72 trillion, reflecting the broad-based pressure that swept through major market segments.
The sell-off was particularly severe in the banking sector, which fell 5.29 per cent, with several highly capitalised lenders among the biggest losers.
First Holdco Plc declined 9.30 per cent, while Abbey Mortgage Bank Plc and Access Corporation Plc fell 9.74 per cent and 7.06 percent respectively. The Insurance sector also weakened by 4.38 per cent, adding to the downward pressure.
The breadth of the market underscored the severity of the sell-off, with only four stocks advancing against 65 decliners, translating to a negative breadth of 0.05x.
Abbey Mortgage Bank emerged as the session’s worst-performing stock, while Ellah Lakes Plc led the gainers with a 7.07 per cent increase. Learn Africa Plc and Wema Bank Plc also gained 1.16 per cent and 0.68 percent respectively.
Sectoral performance was mixed, although gains in selected segments were insufficient to offset the broad market decline. The Consumer Goods sector rose 0.49 per cent, while Oil and Gas and Commodities gained 5.76 per cent and 4.04 per cent respectively.
However, the strong performance of these sectors was overwhelmed by the 5.29 per cent decline in banking stocks, the 4.38 per cent fall in insurance and a 0.64 per cent decline in Industrial Goods.
Despite the sharp decline in prices, trading activity strengthened considerably, suggesting that the sell-off was accompanied by increased investor participation rather than a withdrawal of activity.
Total volume traded surged 84.67 per cent to 753.18 million shares, while transaction value rose 2.09 per cent to N27.82 billion. The exchange recorded 54,051 deals, representing a 3.30 per cent increase from the previous session.
NEM Insurance Plc dominated trading activity, accounting for 131.73 million shares valued at N4.07 billion, making it the leading stock by both volume and value traded.
Market analysts attributed the weak session to continued profit-taking and broad-based selling pressure following the strong gains recorded by Nigerian equities this year.
The latest decline brings the market into a more cautious phase after its YTD return had approached 60 per cent, raising the likelihood of further portfolio rebalancing and profit-taking among investors sitting on substantial gains.
Analysts expect sentiment to remain cautious in the near term, particularly if selling pressure persists across banking and other heavyweight stocks.
However, sustained buying interest in sectors such as oil and gas and commodities could provide some support, even as investors increasingly focus on corporate earnings, valuations and the sustainability of the market’s strong 2026 rally.