Onome Amuge

Nigeria’s equities market closed in negative territory on Tuesday as losses in a handful of mid- and small-cap counters, including Austin Laz & Company and Deap Capital Management & Trust, weighed on the benchmark index.

The Nigerian Exchange All-Share Index (ASI) edged down 0.08 per cent to 141,546.80 points, trimming the year-to-date gain to 37.52 per cent. Market capitalisation fell by N70.99 billion to N89.56 trillion, eroding part of Monday’s advance.

Market breadth was negative, with 27 decliners outweighing 22 gainers. Trading activity also weakened noticeably, with turnover down across all metrics. Total volume fell 25.25 per cent to 414.98 million shares, value dropped 46.25 per cent to N12.94 billion, and the number of deals slid nearly 20 per cent to 25,386.

The day’s losses were led by Austin Laz, a manufacturer of industrial machinery, which fell 6.27 per cent to close at N2.69 per share, its heaviest one-day drop in weeks. The decline extended a volatile run for the company, which has seen sharp swings in recent months amid thin liquidity in its stock.

Deap Capital, an investment and trust services provider, was the second-worst performer, shedding 5.56 per cent to end at N1.70. The stock, which has been under selling pressure throughout the third quarter, has now slipped to its lowest level since July.

FTN Cocoa Processors also featured among the underperformers, declining 4.84 per cent to N5.90. Once a favourite for speculative traders during the cocoa price rally earlier this year, the company has faced profit-taking as investors reassess growth prospects in the face of volatile commodity markets.

Analysts said the outsized drops in Austin Laz and Deap Capital were particularly significant because of their symbolic weight. 

The sector indices reflected the cautious mood. Banking stocks shed 0.30 per cent, dragged down by profit-taking in Guaranty Trust Holding and Zenith Bank despite robust turnover. The Insurance index fell 0.58 per cent, while Consumer Goods dropped 0.39 per cent.

By contrast, Oil and Gas stocks bucked the trend, gaining 0.14 per cent, supported by resilience in Seplat Energy. The Industrial and Commodity indices were unchanged.

Custodian Investment, Multiverse Mining and Exploration, and eTranzact Nigeria were among the bright spots on the day, advancing 9.94 per cent, 9.68 per cent and 9.45 per cent respectively. Custodian closed at N44.80, while Multiverse rose to N13.60 and eTranzact to N17.95.

Despite the market’s subdued sentiment, heavyweight banking and telecom names dominated turnover. Guaranty Trust Holding led trading by both volume and value, exchanging 32 million shares worth N3.1 billion in 1,021 deals. Secure Electronic Technology followed closely on volume with 32 million shares, while United Bank for Africa traded 26 million shares across 1,479 transactions.

On the value index, MTN Nigeria was the second most active, recording N1.6 billion worth of trades, while Zenith Bank posted N1.2 billion.

The mild downturn in the headline index underscored a sense of caution after weeks of choppy trading. The weakening of trading volumes reinforced that narrative. Daily turnover has now fallen below 500 million shares in four of the last five sessions, indicating reduced risk appetite among retail investors, who had been instrumental in the market’s strong rally earlier in the year.

The Nigerian stock market has still posted strong gains in 2025, fuelled by strong performances in banking, energy, and consumer names. But the sharp year-to-date rally, up 37.5 per cent despite Tuesday’s loss, has left valuations stretched in some sectors, encouraging profit-taking.

Market watchers expect continued volatility as investors digest macroeconomic signals. The naira’s recent stabilisation and moderating inflation have created a cautiously optimistic backdrop, but concerns remain over liquidity in the banking system and delays in fiscal reforms.

Analysts also pointed to corporate earnings season, which is expected to provide fresh direction. Strong results could underpin valuations, particularly in the financial and energy sectors, while weaker-than-expected numbers might prompt further rebalancing away from small- and mid-cap names.