Stock Market Loses N4.91 trillion in First Week of June Trading Week

The Nigerian Exchange Limited (NGX) saw its stock market segment decline by N4.9 trillion during the first trading week of June 2026.

This drop occurred shortly after the launch of the T+1 settlement cycle, which was introduced to improve efficiency, reduce risk, and enhance global competitiveness.

Market capitalisation opened at N160.509 trillion at the start of June 2026 and fell to N155.593 trillion by the end of the week.

Across the five trading days, the market experienced a consistent downward trend, except for a brief uptick on Friday. Profit‑taking by investors in blue‑chip stocks such as MTN Nigeria Communications Plc weakened overall returns.

Market capitalisation fell by N1.8 trillion early in June 2026 as investors took profits in BUA Cement Plc, Red Star Express Plc, First Holdco Plc, Oando Plc, and Zenith Bank Plc.

A further decline of N2.28 trillion midweek marked the third consecutive drop, driven by profit‑taking in MTN Nigeria Communications and 42 other stocks.

Consequently, the NGX All‑Share Index (NGX ASI) fell by 3.11 percent, or 7,792.16 basis points, closing at 242,593.31 basis points last week from 250,385.47 basis points at the start of June 2026.

This brings the NGX ASI’s year‑to‑date performance to 55.90 percent.

The index had gained 3.35 percent in May 2026, its lowest month‑on‑month gain, and 60.90 percent over the first five months of the year.

Capital market analysts expressed mixed views on the N4.8 trillion week‑over‑week drop in market capitalisation.

Investment banker and stockbroker Tajudeen Olayinka said, “I think the traditional buy‑side of the market, who are largely institutional investors, are still trying to grapple with the risk and huge resource requirement that prefunding transactions may demand from them under a T+1 settlement cycle. They are simply holding back. The decision to sell down and/or hold back started much earlier, thus preceding the formal launch of T+1. It is also possible that some other investors are taking profit as a result. Since they must necessarily invest in financial instruments, we might see a rebound in the coming days.”

Vice President of Highcap Securities David Adnori told THISDAY, “I don’t think the bearish state of the Equities Market this week can be ascribed to the commencement of T+1 settlement cycle. It’s just a coincidence that T+1 came in at the time market corrections started. This is a seasonal trend that aligns stocks’ values to their fundamentals after end‑of‑year corporate disclosures. There is also a possibility that investors liquidated some assets to proactively position for Dangote Refinery IPO. Market operators may have also been selling to forestall any diminution in capital based on heightening political risk and to comply with new minimum capital requirements.”