Blue‑chip stocks fall as investors take profits, pulling the market lower.

By Peter Egwuatu

Following a sustained rally in the first weeks of May 2026, profit‑taking by investors last week has weighed on the Nigerian stock market.

Analysts noted that the selling was concentrated among major blue‑chip and mid‑cap companies that had recently paid dividends.

A review of activity on the Nigeria Exchange Limited (NGX) last week showed that sell pressure on BUA Cement pushed its share price down 3.5%. GTCO fell 1.2%, Dangote Sugar declined 4.4%, NASCON dropped 5.4% and UACN slipped 5.0%, dragging the NGX All Share Index (ASI) lower by 0.24% week‑on‑week to 249,540.75 points from 250,339.92 points the previous week.

In the same vein, the NGX market capitalisation fell by over N366 billion, closing at N260.077 trillion compared with N160.443 trillion the week before.

Consequently, the month‑to‑date (MTD) and year‑to‑date (YTD) returns moderated to 3.0% and 60.4%, respectively.

Trading activity saw total volume and value traded decline by 50.2% and 56.6% week‑on‑week, respectively.

Across sectors, the Insurance Index fell 1.8%, the Industrial Goods Index slipped 1.2% and the Consumer Goods Index dropped 0.8%, while the Banking Index edged up 1.1% and the Oil & Gas Index rose 0.1%.

In the international commodities market, crude oil prices fell sharply after comments from Donald Trump suggesting that negotiations with Iran had entered the final phase.

Commenting on the outlook, analysts at InvestData Consulting Limited said: “The decline in crude prices eased immediate fears of prolonged supply disruption in the Middle East, although geopolitical tensions in the region continued to keep investors cautious. Concerns over global oil supply and possible disruptions around the Strait of Hormuz remain significant factors influencing energy markets. For Nigeria, movements in crude oil prices remain critical due to their impact on foreign exchange earnings, government revenue and overall macroeconomic stability. Consequently, investors in the domestic equities market are expected to continue monitoring developments in the global oil market alongside exchange rate trends and monetary policy direction.”

They added: “In the near term, the market may continue to 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 said: “Looking ahead, we expect market activity to remain relatively subdued in the near term in the absence of a major positive catalyst to drive sentiment. Nonetheless, we do not rule out selective bargain hunting across fundamentally sound names following the recent moderation in prices.”

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