Nigerian Stock Market Closes in Negative Territory as Investor Wealth Declines
The Nigerian stock market experienced a downward trend on Wednesday, January 28, 2026, with sustained sell pressure pushing key indices into negative territory. The trading session saw investor wealth decline significantly as market participants exhibited cautious sentiment despite increased trading activity.
Market Performance Indicators Show Decline
At the close of trading, the NGX All-Share Index (ASI) fell by 0.33%, representing a decline of 549.44 points. Market capitalisation settled at N105.7 trillion, reflecting a substantial drop in investor wealth. The negative market breadth further underscored the bearish sentiment, with 38 equities declining against 32 gainers out of the 130 stocks that participated in trading.
Trading Activity Shows Mixed Results
Data from the trading session revealed that investors exchanged 623.12 million shares valued at N16.51 billion across 42,119 deals. Compared with the previous trading day, trading volume increased by 29%, while turnover declined by 5%. The number of deals saw a marginal increase of 2%, indicating continued market participation despite the negative trend.
Top Performers and Decliners
Leading gainers during the session included:
- Union Homes Real Estate Investment Trust, which rose by 9.97% to close at N94.85 per share
- Deap Capital Management and Trust with a gain of 9.97%
- Tantalizers advancing by 9.92%
- Skyway Aviation Handling Company appreciating by 9.91%
- Lotus Halal 15 gaining 10.00% to close at N110.02 per unit
Top decliners featured:
- RT Briscoe leading losses after shedding 9.97% to close at N6.50 per share
- May & Baker Nigeria declining by 9.96%
- Ikeja Hotel dropping by 9.92%
- LivingTrust Mortgage Bank depreciating by 9.90%
- eTranzact International falling by 9.16%
Most Actively Traded Stocks
The session's most active stocks by trading volume included:
- Neimeth International Pharmaceuticals with 58.13 million shares exchanged
- Chams following with 39.51 million shares
- Access Holdings trading 33.36 million shares
- Zenith Bank exchanging 32.42 million shares
- Tantalizers recording 29.24 million shares
Market Outlook and Analyst Perspectives
Analysts at Vetiva Research noted that the equities market appears to be entering a consolidation phase as investors assess recent volatility. The research firm stated: "The local bourse appears to be entering a consolidation phase as investors digest the volatility of the past few sessions. Friday's marginal gain suggests that buyers are beginning to find support levels, particularly in sectors that were oversold earlier in the week."
The analysts further observed: "However, the drop in turnover value indicates that institutional participation remains measured, with many participants likely staying on the sidelines until a clearer trend emerges." This cautious approach among institutional investors reflects the broader market uncertainty as participants navigate current economic conditions.
Broader Financial Sector Context
The market decline occurs against the backdrop of Nigeria's banking sector recapitalisation drive, with approximately 100 days remaining until the March 31, 2026 deadline set by the Central Bank of Nigeria. Financial institutions continue working to meet minimum capital requirements, with industry observers suggesting that some banks could face closure if unable to comply with the regulatory timeline.
The recapitalisation initiative has triggered strategic realignments across the banking sector, potentially influencing investor sentiment in related financial stocks. Market participants continue monitoring these developments as they assess the broader implications for Nigeria's financial ecosystem and equity market performance.
