 equities declined by N274 billion amid widespread sell-offs in mid- and large-cap stocks, despite increased){kind=link}
The Nigerian Exchange (NGX) experienced a notable downturn on Thursday, May 22, 2025, as equities shed a substantial N274 billion in market value. The decline was driven by broad-based sell-offs across mid-cap and large-cap stocks, reflecting cautious investor sentiment amid fluctuating market conditions.
At the close of trading, the NGX All-Share Index slipped by 435.17 points, or 0.40 percent, settling at 109,183.93 points. Correspondingly, the market capitalization fell to N68.6 trillion from N68.87 trillion recorded the previous day, highlighting the significant value lost in a single session.
Despite the bearish trend, market activity saw encouraging growth. Trading volume increased by 12 percent with a total of 746.95 million shares exchanged. Turnover rose by 40 percent to N18.20 billion, while the number of deals grew by 35 percent to 26,174 transactions, compared to the previous trading session. This uptick suggests that although investors sold off shares, trading momentum remained active.
A total of 128 equities traded on the day, with 22 advancing and 36 declining. Leading the gainers was Union Homes Real Estate Investment Trust (REIT), which surged 9.97 percent to close at N50.75 per share. Other notable gainers included Red Star Express, which rose 9.91 percent to N6.10; RT Briscoe, up 9.57 percent to N2.29; and Sovereign Trust Insurance, which added 9.37 percent to end at N1.05.
On the losing side, Chellarams and May & Baker Nigeria were the hardest hit, each plunging 9.96 percent to close at N11.75. Linkage Assurance followed with a 9.88 percent drop to N1.46. Other significant decliners included Omatek Ventures, which fell 8.82 percent to N0.62, and McNichols, down 8.70 percent to N2.10.
Among the most actively traded stocks by volume, Fidelity Bank led with 137 million shares exchanged. It was followed by Japaul Gold and Ventures with 81.7 million shares, United Bank for Africa (UBA) with 60.8 million shares, and Tantalizers with 43.5 million shares. This high trading volume in financial and consumer sectors indicates sustained investor interest despite market losses.
Sector-wise performance was predominantly negative. The NGX Top 30 Index dropped 0.48 percent, the Premium Index declined 0.19 percent, and the NGX Pension Index recorded the steepest fall at 0.81 percent. The Industrial Goods Index saw a marginal decrease of 0.01 percent, while the Main Board Index slipped 0.50 percent. The Oil and Gas Index, however, closed flat, showing no change from the previous session.
Despite the one-day loss, the NGX maintains a positive year-to-date return of 6.08 percent, signaling resilience in the broader market. The Main Board and Pension indices have posted returns of 7.53 percent and 13.54 percent respectively for 2025, suggesting pockets of optimism among investors in specific market segments.
Market analysts attribute Thursday’s equities decline to profit-taking after recent gains and cautious sentiment amid macroeconomic uncertainties, including inflation pressures and foreign portfolio capital movements. Investors are reportedly awaiting clearer signals from government economic policies and global market trends before committing further.
The NGX’s performance on Thursday followed a previous negative day on Wednesday, where the market lost around N70 billion in capitalization, indicating some volatility in recent trading sessions.
In summary, while the equities market faced a setback, robust trading activity and positive longer-term returns underscore sustained investor engagement. Market watchers recommend a cautious but optimistic approach, keeping a close eye on economic indicators and corporate earnings reports to navigate upcoming sessions.