Nigerian Exchange Faces Continued Decline Amid Selling Pressure Despite Inflation Drop

The Nigerian Exchange Limited (NGX) has experienced a notable downturn in its market performance, closing lower for the third consecutive week. The market capitalisation plummeted to N260.725 trillion from N261.260 trillion, resulting in a staggering loss of over N535 billion for investors. This decline comes despite a fourth straight month of decreasing headline inflation rates, which reached a historical low in September 2026.

Data from the NGX reveals that the All Share Index (ASI) fell by 0.3%, closing at 247,539.73 points compared to 248,363.55 points the previous week. Key players in the market, including Zenith Bank, MTN Nigeria, and GTCO, have reported significant losses, contributing to this downward trend. Specifically, Zenith Bank saw a drop of 6.5%, while MTN Nigeria and First HoldCo fell by 1.8% and 3.9%, respectively.

Market activity also reflected the downturn, with trading volume and value declining by 39.0% and 38.0% week-on-week. The banking sector was notably impacted, declining by 3.1%, while the insurance index slipped by 0.1%. In contrast, the oil and gas sector saw a modest increase of 3.1%, and consumer goods rose slightly by 0.1%. Analysts at Cordros Capital Limited commented on the current market outlook, stating, “Looking ahead, we expect market sentiment to improve, supported by bargain hunting.”

With the current economic landscape, stakeholders are watching closely to see if the anticipated improvements in market sentiment will materialize, as investors navigate this challenging environment.