The Nigerian Exchange (NGX) recorded a N555 billion loss in market capitalisation on Thursday, driven by a sustained sell-off in Ardel Plunge shares that deepened a seven-day market slide. The All-Share Index (ASI) dropped by 0.8% to close at 98,250.40 points, while market capitalisation fell to N55.6 trillion from N56.1 trillion at the previous close.
Ardel Plunge Leads Decliners
Ardel Plunge shares fell by 10% to N85.50 per share, marking the stock's seventh consecutive day of losses. According to NGX trading data, the company has lost over 40% of its value since the slide began, wiping out approximately N220 billion from its market capitalisation. The decline followed the release of the company's half-year 2026 financial results, which showed a 35% drop in profit after tax to N12.4 billion compared to N19.1 billion in the same period last year.
Broader Market Pressure
The broader market also faced headwinds, with 27 stocks declining against 14 advancers. Major losers included MTN Nigeria, which fell 2.3% to N190.00, and Zenith Bank, which dropped 1.5% to N35.60. The banking index led sectoral declines, falling 1.2%, while the industrial goods index slipped 0.7%. Analysts at Coronation Research attributed the sell-off to profit-taking and concerns over rising interest rates, which have made fixed-income instruments more attractive.
Impact on Investor Sentiment
The seven-day slide has erased N1.2 trillion in market capitalisation since August 12, 2026, according to NGX data. The ASI is now down 3.4% year-to-date, reversing gains from earlier in the year. "The market is reacting to a combination of weak corporate earnings and macroeconomic uncertainty," said Olumide Adesina, an analyst at Lagos-based investment firm Meristem Securities. "Investors are rebalancing portfolios, and the sell-off in Ardel is amplifying the broader market decline."
Despite the losses, some stocks recorded gains, including Dangote Cement, which rose 1.1% to N420.00, and Nestle Nigeria, which gained 0.8% to N1,050.00. However, analysts expect the market to remain under pressure in the short term as investors await the release of second-quarter GDP data and the Monetary Policy Committee's decision on interest rates later this month.
