Nigerian equities extended their downward trend in June, with investors losing about ₦9 trillion in market value within the first three weeks of the month as bearish sentiment continued to dominate trading activities.
Latest data from the Nigerian Exchange (NGX) showed that the All-Share Index (ASI) and market capitalization declined by 3.59% during the week to close at 235,941.27 points and ₦151.327 trillion respectively. The sharp decline translated to a loss of ₦5.69 trillion in market value within a week, effectively wiping out the ₦4.59 trillion gain recorded by the market in May.
A review of market performance indicates that the NGX closed April with a market capitalization of ₦155.994 trillion. The figure rose to ₦160.59 trillion at the end of May, representing a gain of N4.59 trillion and a month-to-date return of 3.24%.
However, June has brought sustained pressure on equities. Following last week’s decline, market capitalization has dropped to ₦151.32 trillion, leaving investors with cumulative losses of about ₦9 trillion so far this month. This represents a month-to-date decline of 5.77%.
The scale of the recent decline underscores the severity of the market correction. With ₦5.69 trillion erased in one week, investors lost an average of approximately ₦1.14 trillion during each trading session. On Friday alone, market capitalization fell by ₦938.75 billion, closing at ₦151.33 trillion compared with N152.27 trillion recorded on Thursday.
Despite the recent downturn, the All-Share Index remains higher by 51.62% on a year-to-date basis, although this is below the peak return of approximately 60.9% recorded in May. The latest losses have erased all gains achieved during that month, with investors watching closely for further market direction before month-end.
Market breadth also weakened significantly. Only 11 stocks recorded price appreciation during the week compared with 40 in the previous week. In contrast, 78 equities posted losses, up from 53 recorded a week earlier, while 57 stocks closed unchanged compared with 53 previously.
Market analysts attribute the ongoing decline to a combination of factors. One major driver is profit-taking by investors following the strong rally that pushed the market’s year-to-date return above 60% at its peak. After months of sustained gains, particularly among stocks that delivered triple-digit returns, many investors have opted to secure profits.
Companies affected by dividend markdowns in recent weeks include: UACN, Eterna Plc, FCMB Group, Airtel Africa, Ɗangote Cement and Champions Breweries. Earlier, Seplat Energy also traded ex-dividend, while Julius Berger, Chemical and Allied Products (CAP), BUA Foods and Jaiz Bank experienced similar adjustments.
