Nigerian equities shed N599 billion as Nestlé, First HoldCo drag market lower

The Nigerian equities market reversed Monday’s gains on Tuesday as investors booked profits in First HoldCo and GTCO, even as less than expected half year result in Nestlé Nigeria Plc triggered sell off, wiping N599 billion off market capitalisation despite a sharp increase in trading activity.

The benchmark NGX All-Share Index (ASI) declined 0.38% to close at 244,802.83 points, down from 245,730.53 points, while market capitalisation fell to N158.02 trillion, representing a loss of approximately N598.83 billion.

The market’s year-to-date return moderated to 57.32%, while the month-to-date return slipped into negative territory at -0.2%, reflecting renewed selling pressure across large-cap banking and consumer goods stocks.

Market summary:

• All-Share Index (ASI): 244,802.83 points, down 0.38%.
• Market capitalisation: N158.02 trillion, down 0.38%.
• Market capitalisation loss: Approximately N599 billion.
• Year-to-date (YTD) return: +57.32%.
• Month-to-date (MTD) return: -0.2%.
• Trading volume: 1.56 billion shares, up 69.25%.
• Market turnover: N28.73 billion, down 24.09%.
• Total deals: 54,160, down 25.34%.
• Market breadth: 13 gainers versus 40 losers.

Top 5 Gainers:

• AVA Capital: up 9.94% to N9.95.
• Livestock Feeds: up 9.71% to N113.00.
• Neimeth International Pharmaceuticals: up 8.43% to N9.00.
• AIICO Insurance: up 3.47% to N4.18.
• Oando: up 3.30% to N36.00.

Top 5 Losers:

• Multiverse Mining & Exploration: down 10.00% to N22.95.
• LivingTrust Mortgage Bank: down 10.00% to N3.42.
• McNichols: down 9.92% to N5.45.
• Thomas Wyatt Nigeria: down 9.87% to N3.56.
• Eterna: down 9.09% to N33.00.

Driving the numbers:

Tuesday’s decline was led by renewed profit-taking in heavyweight banking and consumer goods stocks, with Nestlé Nigeria (-2.8%), First HoldCo (-3.0%), UBA (-2.2%) and GTCO (-0.8%) accounting for much of the downward pressure on the benchmark index.

Market sentiment remained firmly negative as only 13 stocks advanced against 40 decliners, underscoring broad-based selling across the market.

• The Banking Index emerged as the worst-performing sector, declining 1.27%.
• The Consumer Goods Index followed with a -1.25% decline.
• Insurance Index declined -1.11% reflecting sustained weakness in financial and consumer counters.
• By contrast, the Oil & Gas Index edged up 0.05%, while the Commodity Index gained 0.01%. The Industrial Goods Index closed flat.

Despite the bearish closing, trading activity strengthened considerably.

Volume and value:

Total volume traded surged 69.25% to 1.56 billion shares, although the value of transactions fell 24.09% to N28.73 billion, suggesting that market activity was driven largely by lower-priced stocks.

• Japaul Gold & Ventures dominated volume with 904.42 million shares valued at N2.72 billion, accounting for well over half of the day’s traded volume.
• Sterling Financial Holdings, FCMB Group, Chams Holding Company, and Neimeth International Pharmaceuticals also featured among the most actively traded stocks by volume.
• By value, MTN Nigeria led the market with approximately N3.25 billion worth of shares exchanged, highlighting continued institutional interest in the telecom giant despite the broader market weakness.

Sector performance:

Sectoral performance was predominantly negative.

• The Banking Index led sectoral losses with a 1.27% decline.
• Consumer Goods followed with -1.25%.
• Insurance declined by -1.11%.

The Oil & Gas Index recorded the sole marginal gain of 0.05% while the Commodity Index edged up 0.01%. The Industrial Goods Index remained unchanged.

What you should know:

Tuesday’s decline suggests investors temporarily shifted toward profit-taking after recent gains in large-cap banking and consumer goods stocks, even as trading volumes rose sharply.

The disconnect between higher trading volume and lower transaction value indicates increased activity in relatively lower-priced equities rather than aggressive accumulation in blue-chip stocks.

Looking ahead, market participants are expected to focus on the ongoing release of half-year corporate earnings, which could provide fresh catalysts for fundamentally strong stocks.

Analysts at Cowry Asset Management expect the market to regain positive momentum as more companies release their H1 2026 financial results, with stronger earnings likely to stimulate renewed buying interest and improve overall investor sentiment.