NGX loses N1.81trn despite faster trade settlement

The Nigerian Exchange Group (NGX) began trading for June 2026 on a weak footing, as investors lost N1.81 trillion on Monday, even as the market launched a new, faster system for completing transactions. At the close of trading, the market’s main index dropped by 1.13 per cent to 247,560.66 points, down from 250,385.47 recorded in the previous session. This decline pulled total market capitalisation down to N158.7 trillion from N160.50 trillion, while the year-to-date return eased to 59.09 per cent. The session was significant as it marked the first day of the T+1 settlement cycle, a new system that ensures all share transactions are completed within one business day instead of two. The reform, introduced by the Central Securities Clearing System in collaboration with the Securities and Exchange Commission and other stakeholders, is designed to improve market efficiency, boost liquidity, and bring Nigeria in line with global standards. However, despite this milestone, investor sentiment remained weak as many traders sold shares to lock in profits after the market’s strong rally in recent months. The sell-off was most visible in large companies, especially in the industrial and banking sectors, which dragged the overall market lower. Market breadth closed negative, with 37 stocks declining compared to 23 gainers, while 86 stocks remained unchanged, reflecting the broad-based nature of the sell-off. BUA Cement recorded the biggest loss of the day, dropping by 10 per cent to N378 per share. This sharp decline heavily impacted the industrial goods sector, which fell by 3.85 per cent. Analysts say the drop may be linked to profit-taking after the company recently posted strong earnings. Banking stocks also came under pressure, with the sector index falling by 1.49 per cent. Major lenders, including the FUGAZ group, saw mild declines as investors trimmed positions. On the gainers’ side, International Energy Insurance led with a 9.96 per cent increase, followed by Consolidated Hallmark Holdings, The Initiates, R.T. Briscoe, and Ikeja Hotel, which all posted notable gains. Trading activity remained relatively strong. A total of 1.13 billion shares valued at N44.28 billion were traded in 91,880 deals. While the volume of shares traded dropped by 6.38 per cent, the value of transactions rose slightly by 1.96 per cent, suggesting that large investors were still active in the market. Market analysts say the decline is a continuation of the profit-taking trend seen at the end of May, when the market also recorded losses after reaching record highs earlier in the month. They note that after a strong run that pushed returns above 60 per cent, many investors are choosing to secure their gains. Overall, the weak start to June shows that while structural improvements like the T+1 system may strengthen the market over time, short-term movements are still largely driven by investor sentiment and profit-taking activities.

(Source：The Sun Nigeria)