Equities tumble amid wave of selling in top-tier firms

Last week, the Nigerian stock market experienced a downturn due to investors taking profits, following a sustained rally in previous weeks of May 2026, with major blue chip and mid-cap companies that had paid dividends to their shareholders being the primary targets of this sell-off.

Analysts observed that the profit-taking was particularly pronounced in companies such as BUA Cement, which saw its share price decline by 3.5%, and other notable companies including GTCO, Dangote Sugar, NASCON, and UACN, with declines of 1.2%, 4.4%, 5.4%, and 5.0%, respectively.

The decline in these companies' share prices led to a 0.24% decrease in the NGX All Share Index, ASI, which closed at 249,540.75 points, down from 250,339.92 points the previous week.

Additionally, the NGX market capitalisation shed over N366 billion, closing at N260.077 trillion, a significant drop from N160.443 trillion in the previous week, further highlighting the market's downturn.

The Month-to-Date, MtD, and Year-to-Date, YtD returns also felt the impact, moderating to 3.0% and 60.4%, respectively, as a result of the profit-taking and decline in market capitalisation.

Trading activity was also affected, with total volume and value traded declining by 50.2% and 56.6% Week-On-Week, WoW, respectively, indicating a significant slowdown in market activity.

Across various sectors, the Insurance Index declined by 1.8%, the Industrial Goods Index by 1.2%, and the Consumer Goods Index by 0.8%, while the Banking Index and Oil & Gas Index recorded slight gains of 1.1% and 0.1%, respectively.

In the international commodities market, crude oil prices experienced a sharp decline following comments from Donald Trump suggesting that negotiations with Iran had entered the final phase, which eased fears of a prolonged supply disruption in the Middle East.

Analysts at InvestData Consulting Limited noted that despite the decline in crude prices, geopolitical tensions in the region continued to keep investors cautious, and concerns over global oil supply and possible disruptions around the Strait of Hormuz remained significant factors influencing energy markets.

For Nigeria, the movement in crude oil prices is critical due to its impact on foreign exchange earnings, government revenue, and overall macroeconomic stability, making it essential for investors in the domestic equities market to continue monitoring developments in the global oil market.

According to InvestData Consulting Limited, investors are expected to keep a close eye on exchange rate trends and monetary policy direction, alongside developments in the global oil market, as these factors will significantly influence the domestic equities market.

In the near term, analysts anticipate that the market may experience mixed trading sessions as investors react to profit-taking opportunities, corporate disclosures, fixed-income market yields, and global economic developments.

Analysts at Cordros Capital expect market activity to remain relatively subdued in the near term, citing the absence of a major positive catalyst to drive sentiment, although they do not rule out selective bargain hunting across fundamentally sound names following the recent moderation in prices.