Onome Amuge

Nigeria’s equities market endured another bruising session on Wednesday, extending its bearish streak for a third consecutive day as investors continued to rotate out of financials and consumer-facing stocks.

The benchmark NGX All-Share Index (ASI) fell 0.45 per cent to close at 138,780.55 points, dragging the year-to-date gain to 34.23 per cent. Market capitalisation shed N394.45 billion to N87.42 trillion. Market breadth remained firmly negative, with 43 losers overwhelming just 14 gainers, a pattern that reinforced investor caution in an environment clouded by macroeconomic and corporate headwinds.

Among the day’s worst performers were Axa Mansard Insurance and Learn Africa, both of which posted near double-digit declines. Their losses, compounded by weakness in Legend Internet, Universal Insurance and DAAR Communications, helped steer the market lower across key sectors.
The insurance index suffered the heaviest drop of the day, sliding 4.46 per cent as the sector’s bellwether, Axa Mansard, tumbled 9.95 per cent to N14.39. The stock had closed at N15.98 in the previous session but lost N1.59 after investors reacted to concerns over rising claims costs and the potential impact of higher reinsurance charges on margins.

The insurer, a member of the AXA Group, has in recent quarters faced mounting payout obligations amid Nigeria’s volatile operating environment. Analysts noted that persistent inflationary pressures, combined with the rising cost of health and motor insurance claims, have weighed on profitability expectations.

Universal Insurance also retreated sharply, losing 9.6 per cent to close at N1.13. The stock, which had attracted speculative interest earlier in the year, succumbed to profit-taking as market sentiment turned negative.

Learn Africa, a leading educational publishing firm, was the second-largest decliner on Wednesday, falling 10 per cent to N7.02 from N7.80. The 78 kobo loss reflected investor anxiety over slowing consumer spending.

Analysts said the company’s share price, which had rallied earlier in 2025 on expectations of improved earnings from curriculum revisions and higher book adoption, has become vulnerable to profit-taking amid broader market weakness.

The consumer goods index slid 1.32 per cent, with Cadbury among the few stocks to buck the trend, advancing on renewed buying interest. But the sector as a whole has been hit by higher input costs, currency depreciation, and weaker household demand.

 Losses were not confined to insurers and publishers. Legend Internet, one of the newer listings on the NGX, also fell by the daily maximum 10 per cent limit, closing at N4.77 from N5.30. The company, which operates in Nigeria’s fast-evolving digital infrastructure space, has seen its stock fluctuate sharply since listing as investors face questions around its growth prospects and balance sheet resilience.

The banking sector index lost 0.55 per cent, weighed down by declines in several tier-two lenders, though activity remained strong. Access Holdings, Fidelity Bank, GTCO, UBA and AIICO Insurance ranked among the most heavily traded counters. In total, 482.76 million shares worth N19.67 billion were exchanged across 28,193 deals. While volume rose by 19.34 per cent compared to the previous day, the value of trades slumped by more than half, reflecting a tilt toward lower-priced equities.

Other sectors also struggled. Oil and gas dipped 0.44 per cent, commodities slid 0.08 per cent, while industrials were the sole bright spot, rising 0.23 per cent on selective buying in large-cap cement stocks.

The three-day losing streak has unsettled investors who had been buoyed by the NGX’s strong rally earlier this year. The ASI’s year-to-date gain, once approaching 40 per cent, has now slipped back to 34.23 per cent.

Market analysts cited a mix of profit-taking, weak macroeconomic signals, and corporate earnings uncertainties as factors driving the selloff. Nigeria continues to battle high inflation, currency volatility, and sluggish GDP growth, all of which weigh on investor risk appetite.

 Looking ahead, market participants say the trajectory will depend on a combination of policy signals, upcoming corporate results, and external macro conditions.

With insurers under pressure from higher claims, and consumer-facing stocks vulnerable to weaker demand, analysts expect investors to rotate toward defensive plays in industrials and select banking names. However, volatility is expected to remain high given Nigeria’s challenging economic backdrop.