Nigeria’s stock market was stuck in a bearish condition on Thursday as heavy losses in BUA Cement and MTN Nigeria wiped out gains elsewhere, pushing the benchmark index down nearly one per cent and erasing more than N780bn in value from investors’ portfolios.

The Nigerian Exchange (NGX) All-Share Index dropped 0.87 per cent to close at 140,332.44 points, from 141,566.30 points in the previous session. Market capitalisation fell to N88.78 trillion, extending the week’s downward streak as profit-taking in heavyweight stocks overshadowed advances among smaller companies.

The sell-off was concentrated in bellwether counters, with BUA Cement shedding 9.96 per cent of its opening value to emerge as the single biggest drag on the market. MTN Nigeria, the country’s second-largest listed company by capitalisation, also lost 2.25 per cent. Together, the two stocks accounted for the bulk of Thursday’s decline, underscoring their influence on a market still dominated by a handful of large-cap names.

Cement producers have faced sustained selling pressure in recent weeks as investors reassess margins in light of persistent energy costs and a fragile construction pipeline. Analysts said BUA Cement’s decline reflected investor caution over earnings resilience in an environment of muted consumer demand and elevated financing costs.

MTN Nigeria Communications Plc, a major player in the telecommunications industry and another market heavyweight, saw its share price drop by 2.25 per cent. While this percentage loss was not as severe as BUA Cement’s, its significant market value meant that the decline had a substantial impact on the overall index performance. As a favourite among both local and foreign investors, MTN’s movement often reflects broader sentiment towards Nigeria’s corporate and macroeconomic environment. The concurrent drops in these two high-value stocks created a one-two punch that proved too strong for the rest of the market to withstand.

Across the bourse, a total of 45 stocks fell against 16 gainers, with Julius Berger dropping 9.96 per cent, AXA Mansard 5.18 per cent, Sterling Financial Holdings 2.56 per cent, and Access Holdings 1.64 per cent. Other major laggards included Wema Bank (-0.84 per cent), United Capital (-0.78 per cent), Oando (-0.61 per cent) and Stanbic IBTC (-0.53 per cent).

Meanwhile, lightweight stocks bore the brunt of speculative selling as International Energy Insurance, Thomas Wyatt and University Press all lost close to 10 per cent. 

Sectoral performance was mostly negative, with industrials down 4.04 per cent, insurance off 4.69 per cent, oil and gas lower by 0.06 per cent and consumer goods slipping 0.04 per cent. On the other end of the spectrum, the banking index emerged a bright spot, up 0.47 per cent.

Trading volumes also fell as 573.8 million shares worth N12.88 billion changed hands in 25,881 deals, representing a 20.5 per cent decline in volumes compared to the previous session. By value, turnover was down 0.5 per cent.

Fidelity Bank led both the volume and value charts, accounting for 16.8 per cent of total turnover with 96 million shares traded worth N1.9 billion. Other actively traded names included Veritas Kapital Assurance, Universal Insurance, Access Holdings and Jaiz Bank.

Among the day’s gainers, Jaiz Bank rose 9.75 per cent, NSL Tech climbed 9.38 per cent, while Omatek and Chams advanced 5.88 per cent and 5.00 per cent, respectively. Custodian Investment added 4.86 per cent, with 16 stocks closing higher overall.

In the broader context, the sell-off comes against the backdrop of a market that has still delivered robust gains this year. Even after Thursday’s losses, the NGX is up more than 36 per cent year-to-date, buoyed by earlier optimism over reforms under President Bola Tinubu’s administration. 

Analysts caution that volatility is likely to persist as investors weigh corporate earnings against macroeconomic challenges. Nigeria’s inflation slowed to 21.9 per cent in July from 22.2 per cent the previous month, according to official data, but the cost of living remains high. For companies in sectors reliant on household demand, this continues to strain top-line growth.

Looking ahead, Daniel Wesonga, senior sales manager at Pepperstone, said Nigeria’s participation in the 9th Tokyo International Conference on African Development (TICAD9) could provide a boost to sentiment if it translates into tangible investment flows. 

“The government is pursuing strategic partnerships in power, industry and agriculture, with support from JICA-backed projects and the Bank of Industry. If successful, these initiatives could support equities by attracting foreign investment and boosting confidence in long-term growth,” he noted. 

Wesonga’s sentiment indicates that while the market is currently sensitive to local profit-taking, it is underpinned by a more positive long-term narrative. The current downturn is expected to offer a buying opportunity for savvy investors looking to capitalise on the dip in high-quality stocks. 

Analysts assert that the ability of the market to absorb the day’s losses and the continued focus on long-term economic growth will be key to determining whether the Nigerian Exchange can resume its bullish trajectory and re-enter record-breaking territory.