The Stock market section of the Nigerian Exchange Limited (NGX) has decapitated by N4.9 trillion in the first trading week in June 2026.
This is coming in the week T+1 settlement cycle was launched to enhance efficiency, reduce risk, and improve global competitiveness.
The market capitalisation that opened for trading in June 2026 at N160.509 trillion, dropped by N4.9 trillion to close last week at N155.593 trillion.
Out of the five trading days, the stock market saw a consistent downward movement except for its closing transaction on Friday. Profit taking in blue chip listed stocks such as MTN Nigeria Communications Plc, among others weaken investors return.
The market capitalisation had opened June 2026, dropping by N1.8 trillion on surge investors’ profit-taking in BUA Cement Plc, Red Star Express Plc, First Holdco Plc, Oando Plc and Zenith Bank Plc.
It also suffered another heavy downward performance midweek, dropping by N2.28 trillion to make it the third consecutive decline, on investors profit-taking in MTN Nigeria Communications, 42 others.
Consequently, the NGX All-Share Index (NGX ASI) dipped by -3.11 per cent or -7,792.16
basis points to close at 242,593.31 basis points last week from 250,385.47 basis points when the stock market opened for trading in June 2026.
This brings the NGX ASI performance to 55.90 per cent in its investors Year-to-Date (YtD) performance.
The index had gained 3.35 per cent in May 2026, the lowest gain on a month-on-month performance and 60.90 per cent in its first five months growth.
Capital market analysts have expressed mixed feelings over the N4.8 trillion WoW drop in market capitalisation.
Investment Banker & Stockbroker, Tajudeen Olayinka said, “I think the traditional buy-side of the market, who are largely institutional investors, are still trying to grapple with the risk and huge resource requirement that prefunding transactions may demand from them under a T+1 settlement cycle.
“They are simply holding back. The decision to sell down and/or hold back started much earlier, thus preceding the formal launch of T+1. It is also possible that some other investors are taking profit as a result. Since they must necessarily invest in financial instruments, we might see a rebound in the coming days.”
Also, the Vice President, Highcap Securities, David Adnori in a chat with THISDAY said, “ I don’t think the bearish state of the Equities Market this week can be ascribed to the commencement of T+1 settlement cycle. It’s just a coincidence that T+1 came in at the time market corrections started.
“This is a seasonal trend that aligns stocks’ values to their fundamentals after end of year corporate disclosures. There is also a possibility that investors liquidated some assets to proactively position for Dangote Refinery IPO. Market Operators may have also been selling to forestall any diminution in capital based on heightening political risk and to comply with new minimum capital requirements.”
