Nigeria’s $118bn Stock Market Slows After Weeks of Gains

Nigeria’s stock market closed slightly lower on Thursday as investors took profit after weeks of strong gains.

The Nigerian Exchange had enjoyed a sharp rally in recent weeks, but trading slowed as investors sold some high-performing stocks and became more selective.

The benchmark NGX All-Share Index dropped by 0.1 per cent to close at 252,243.11 points. This means the market lost 265.08 points from the previous session.

The decline was small, but it showed that traders were beginning to lock in gains after one of the strongest rallies in the market this year.

Market remains strongly positive in 2026

Despite Thursday’s pullback, Nigerian equities remain one of the best-performing markets in 2026.

The market is up 5.22 per cent over the past week, 20.51 per cent in the last one month and 62.1 per cent since the start of the year.

This strong performance has been driven by gains in banking stocks, industrial companies, insurance firms and renewed investor interest in Nigerian assets.

Nigeria’s stock market capitalisation now stands at N161.7 trillion, about $118 billion.

Trading activity falls sharply

Trading activity weakened compared with the previous session.

Investors traded 1.04 billion shares worth N41.5 billion in 74,677 deals.

This represented a 34 per cent drop in trading volume and a 55 per cent fall in turnover from Wednesday’s session.

The decline in activity suggests that many investors are becoming cautious after the market’s fast rise.

Top gainers and losers

Red Star Express led the gainers’ chart after its share price rose by 18.59 per cent to N31.90.

Cornerstone Insurance, Austin Laz & Company and Learn Africa also recorded gains during the session.

On the losers’ side, Zichis Agro Allied Industries dropped by 10.09 per cent.

FTN Cocoa Processors, Meyer and RT Briscoe also posted notable losses.

Chams leads trading volume

Chams recorded the highest traded volume on Thursday, with 128 million shares exchanged.

VFD Group, First HoldCo and Access Holdings also ranked among the most actively traded stocks.

Trading activity showed continued interest in mid-cap and large-cap stocks, although investors appeared more cautious than in previous sessions.

Insurance and pension stocks stay strong

Sector performance was mixed.

The NGX Insurance Index rose by 0.46 per cent, while the NGX Pension Index also closed higher.

Oil and gas stocks remained close to multi-year highs. The sector index has gained more than 128 per cent this year, supported by expectations of stronger earnings and naira-linked revenue growth.

Investors weigh next move

The market’s latest slowdown comes as investors assess whether the rally can continue.

Analysts say stronger corporate earnings, improved foreign exchange liquidity and signs of currency stability have helped boost confidence in Nigerian equities.

Still, Thursday’s sharp drop in turnover shows that some traders are becoming more cautious after months of aggressive buying.

The market remains firmly positive for the year, but the latest session suggests that investors are now balancing optimism with profit-taking.