The Nigerian Exchange (NGX) recorded a sharp selloff in banking stocks on Monday as investors exited positions over dividend concerns, which triggered approximately N1.3 trillion losses overshadowing the first day of extended trading hours.
Market data for April 27, 2026 showed the All-Share Index (ASI) declined by 0.94% to 223,602.29 points, pulling the year-to-date return down to +43.69% and erasing approximately N1.3 trillion from market capitalization, which closed lower at N143.97 trillion.
Total volume traded rose to 678.17 million units across 82,838 deals, with a market value of N44.14 billion, reflecting the impact of longer trading hours that commenced today as well as heightened sell pressure across key banking names.
However, market analysts attributed the sharp downturn to dividend-related concerns that triggered a broader wave of caution among investors, particularly in the banking sector, amid longer trading hours aimed at boosting liquidity and participation.
What they are saying
Market participants say the selloff was largely driven by fears around dividend payouts and delayed earnings by some banks. Analysts noted that sentiment remained weak despite the structural shift introduced by extended trading hours.
- “There was remarkable turnover volume today… but the banking sector declined by 6.49%, which is massive. It was driven largely by UBA going on full offer and investors exiting positions in Access Bank and others,” said David Adonri, Vice Chairman of Highcap Securities Limited.
- “The development had little to do with the newly introduced extended trading hours,” he added.
- “The market is reacting to UBA’s inability to pay dividends due to regulatory forbearance. Investors are now pricing in the risk that other banks like Access, Fidelity, and First HoldCo may face similar constraints,” said Aruna Kebira, Managing Director/CEO of Globalview Capital Limited.
- Kebira, however, noted that the reaction may be exaggerated, stressing that delays in financial reporting do not necessarily indicate weak fundamentals.
He pointed out that GTCO, Zenith, Wema, Stanbic, etc declared increased payout to shareholders, insisting that the fundamentals of the banking system remain strong and should not be judged by isolated development.
More insights
Trading data shows that banking stocks were the primary drivers of the market decline, recording steep losses across major counters. The negative sentiment persisted despite increased trading activity linked to the extended hours.
- First HoldCo Plc declined by 10% to close at N67.50, while United Bank for Africa (UBA) also dropped 10% to N49.50.
- Access Holdings Plc shed 9.9%, and Fidelity Bank Plc fell by 9.87%, reflecting widespread bearish sentiment.
- Zenith Bank Plc recorded the highest trading volume with over 76 million shares, followed by Wema Bank Plc and Access Holdings.
- Only Wema Bank and Stanbic IBTC survived the banking sector bearish trade.
Although volumes surged to 678.17 million units valued at N44.14 billion across 82,838 deals, analysts emphasized that the increased activity reflected sell pressure and investor repositioning rather than optimism.
What you should know
The decline highlights how sensitive investors are to dividend expectations, especially following recent regulatory directives affecting the banking sector.
- The Central Bank of Nigeria (CBN) had earlier instructed banks to resolve all forbearance obligations before declaring dividends.
- Banks were barred from paying dividends if outstanding forbearance exposures remained unresolved.
- Some institutions, including GTCO, Zenith Bank, Access Corp, and Fidelity Bank, previously indicated plans to exit forbearance, giving specific timelines for their forbearance exit.
- GTCO and Zenith, which first had exited forbearance before other lenders later raised investor optimism by declaring dividends, but UBA’s recent financial statement showed no dividend proposal.
- UBA’s move appears to have triggered renewed uncertainty, leading to Monday’s selloff as investors reassessed dividend prospects across the sector.
While the newly introduced trading window—from 9:00 a.m. to 4:00 p.m.—is expected to improve liquidity over time, it also provided more room for investors to react swiftly to corporate disclosures.
Market watchers maintain that clearer guidance on earnings and dividend policies will be key to restoring confidence in one of the exchange’s most influential sectors.
