The Nigerian Exchange (NGX) witnessed a significant market sell-off in August 2026, erasing N5.9 trillion from the market capitalisation, with BUA Foods and MTN Nigeria emerging as the biggest losers, according to a report by Nairametrics.
Market Capitalisation Drops by N5.9 Trillion
Data from the NGX showed that the market capitalisation declined from N62.7 trillion at the beginning of August to N56.8 trillion by August 22, 2026, representing a drop of N5.9 trillion or 9.4%.
The sell-off was driven by profit-taking in heavyweight stocks, particularly BUA Foods and MTN Nigeria, which together accounted for a significant portion of the market's losses.
BUA Foods and MTN Nigeria Lead Declines
BUA Foods saw its share price fall by 18.2% during the period, from N420 to N343.6 per share, while MTN Nigeria declined by 15.3%, from N320 to N271 per share. These declines contributed substantially to the overall market downturn.
Other notable losers included Airtel Africa, which dropped by 12.1%, and Dangote Cement, which fell by 10.5%.
Impact on Investors and Market Outlook
The sell-off has raised concerns among investors about the sustainability of the market's recent gains, which had been driven by strong corporate earnings and improved macroeconomic conditions.
According to analysts, the market's decline is partly attributed to profit-taking after a prolonged rally, as well as concerns about rising interest rates and inflation. The NGX All-Share Index also declined by 8.7% during the same period.
Despite the losses, market experts note that the sell-off may present buying opportunities for long-term investors, as fundamentals of many listed companies remain strong. The market is expected to remain volatile in the short term as investors digest the impact of global economic trends and domestic policy changes.
