Market Declines as Nestle and BUA Foods Drag Indices
Nigerian equities closed lower on Thursday, July 23, 2026, with the All-Share Index (ASI) dropping by 0.50% to settle at 98,450.27 points. The decline was primarily driven by heavy losses in Nestle Nigeria and BUA Foods, which together erased N150 billion from the total market capitalization, bringing it to N55.6 trillion.
According to trading data from the Nigerian Exchange (NGX), Nestle Nigeria recorded a maximum allowable loss of 10%, falling to N950 per share. Similarly, BUA Foods shed 9.9% to close at N310 per share. The losses in these two heavyweight stocks accounted for the bulk of the market's downward movement.
Breadth of the Market: Losers Outnumber Gainers
The market breadth was negative, with 28 stocks declining against 18 advancers. Among the top losers were Nestle, BUA Foods, and International Breweries, which dropped by 9.8% to N3.50. On the gainers' side, MTN Nigeria rose by 2.5% to N200, while Dangote Cement gained 1.2% to N450.
Analysts attributed the sell-off to profit-taking after a recent rally. "The market is experiencing a natural correction after weeks of gains. Investors are locking in profits, especially in high-cap stocks like Nestle and BUA Foods," said a stockbroker at Meristem Securities.
Sectoral Performance: Mixed Results Across Industries
The banking sector index rose by 0.3%, supported by gains in Zenith Bank (+1.1%) and Access Holdings (+0.8%). However, the consumer goods index fell by 1.2%, dragged down by Nestle and BUA Foods. The industrial goods index was flat, while the oil and gas index declined by 0.4%.
Total traded volume stood at 320 million shares worth N4.5 billion, down from the previous day's N5.2 billion. The most active stocks by volume were Transcorp, FBN Holdings, and UBA.
Market Outlook: Volatility Expected in Short Term
Market analysts expect continued volatility in the coming sessions as investors digest corporate earnings and macroeconomic data. "We may see further profit-taking, but the underlying fundamentals remain strong. The market is still up 12% year-to-date, so a pullback is healthy," noted an analyst from CSL Stockbrokers.
The NGX All-Share Index has gained 12.3% since the start of 2026, driven by improved investor sentiment following policy reforms and stable interest rates. However, Thursday's decline highlights the market's sensitivity to profit-taking in key stocks.
