NGX loses ₦516bn as banking stocks drag market back down

Nigeria's stock market gave back its gains on Wednesday, with ₦515.95 billion wiped off the value of listed companies as investors sold off shares, especially in banks.

The All-Share Index, the market's main yardstick, fell 0.32 per cent to close at 245,116.49 points, down from 245,911.13 points on Tuesday. Market capitalisation — the total value of all listed equities — dropped from ₦159.67 trillion to ₦159.15 trillion, according to figures reported by Nairametrics, Punch and Tribune.

The pullback came a day after the market had risen 0.26 per cent, adding ₦410.86 billion. Wednesday's session erased that gain.

Why banks led the fall

The banking index fell 1.49 per cent, the steepest drop among the sectors tracked. Access Holdings lost 6.12 per cent to close at ₦26.10, First Holdco dropped 4.59 per cent to ₦131.00, and Zenith Bank slipped 1.21 per cent to ₦122.00. Ecobank Transnational fell 1.47 per cent, while United Bank for Africa and Guaranty Trust Holding Company also closed lower.

Fidelity Bank was a rare bright spot in the sector, gaining 6.02 per cent to ₦22.00.

Insurance stocks also came under pressure, with the insurance index down 1.41 per cent. Custodian Investment fell 7.57 per cent, Royal Exchange lost 7.41 per cent and Consolidated Hallmark Holdings dropped 7.14 per cent. AIICO Insurance and Veritas Kapital Assurance posted gains.

Oil and gas was the only sector that ended higher, up 0.12 per cent, helped by Oando's 4.50 per cent rise to ₦36.00 and a small gain for Japaul Gold & Ventures. Consumer goods slipped 0.43 per cent, while the industrial index was virtually flat.

Losers outnumbered gainers 37 to 18. Computer Warehouse Group fell 9.98 per cent, UPDC Real Estate Investment Trust lost 9.93 per cent and Austin Laz dropped 9.92 per cent. On the winning side, Livingtrust Mortgage Bank rose 9.90 per cent and ABC Transport gained 9.77 per cent.

What it means for ordinary Nigerians

Share prices matter beyond the trading floor. Many Nigerians hold stocks directly or through pension funds and mutual funds, so a down day trims the value of those savings on paper. Companies also raise money on the exchange to expand and hire, and a weaker market can make that harder.

Trading remained busy: 354.03 million shares changed hands in 32,514 deals, according to Nairametrics and Punch. Tribune put the volume at 354.13 million shares and the value of trades at ₦23.60 billion, down 8.79 per cent.

Even after Wednesday's loss, the market is still up 57.52 per cent since January, Tribune reported — a reminder that one session's fall sits inside a much stronger year.

What happens next: Attention turns to whether the selling continues or buyers step back in, particularly in banking stocks, which carry heavy weight on the index. The sources do not indicate what will drive the next session.