Investors on the Nigerian Exchange Limited (NGX) lost N1.811 trillion on Monday as widespread profit-taking across major stocks pushed the equities market into negative territory on the first trading day of June.
The sharp decline came as the capital market commenced trading under the newly introduced T+1 settlement cycle, a reform aimed at improving market efficiency, liquidity and competitiveness.
Despite the milestone transition, heavy sell-offs in key equities, including BUA Cement, Trans-Nationwide Express, John Holt, Red Star Express and Deap Capital Management, weighed heavily on market performance.
At the close of trading, the NGX market capitalisation fell by N1.811 trillion, declining from N160.508 trillion recorded on Friday to N158.697 trillion.
Similarly, the All-Share Index (ASI) shed 2,824.81 points, or 1.13 per cent, to close at 247,560.66, compared with 250,385.47 in the previous session.
The downturn weakened the market’s year-to-date return to 59.09 per cent.
Market breadth remained negative as 37 stocks recorded price declines against 24 gainers, reflecting sustained bearish sentiment among investors.
BUA Cement led the losers’ table after shedding 10 per cent to close at N378 per share.
Trans-Nationwide Express followed with a loss of 9.85 per cent to settle at N4.76, while John Holt declined by 9.73 per cent to close at N15.30 per share.
Red Star Express dropped by 9.71 per cent to N30.70, while Deap Capital Management depreciated by 9.15 per cent to end the session at N5.16 per share.
On the gainers’ chart, International Energy Insurance emerged as the best-performing stock, rising by 9.96 per cent to close at N4.97 per share.
Consolidated Hallmark Holdings gained 9.92 per cent to settle at N6.87, while The Initiates Plc appreciated by 9.86 per cent to close at N31.20 per share.
RT Briscoe advanced by 9.16 per cent to N14.90, while Ikeja Hotel gained 8.71 per cent to close at N43.70 per share.
Trading activity also declined during the session as total volume traded fell by 6.38 per cent.
Investors exchanged 1.13 billion shares worth N44.28 billion in 91,880 deals, compared with the previous trading session.
Abbey Mortgage Bank emerged as the most actively traded stock by volume, accounting for 291.16 million shares, representing 25.82 per cent of total market volume.
In terms of value, Aradel Holdings topped the chart with transactions worth N6.31 billion, contributing 14.26 per cent of the day’s total turnover.
Market analysts attributed the sell-off largely to profit-taking activities following the strong gains recorded in recent weeks, which had pushed the market to record highs.
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They noted that while the commencement of the T+1 settlement cycle marks a significant step toward aligning Nigeria’s capital market with global best practices, investor sentiment in the short term may continue to be influenced by profit-taking, corporate earnings expectations and broader macroeconomic developments.
The T+1 settlement framework allows securities transactions to be settled one business day after execution, replacing the previous T+2 regime and is expected to improve liquidity, reduce counterparty risk and enhance overall market efficiency.
Despite Monday’s decline, market analysts remain optimistic about the long-term outlook for Nigerian equities, citing strong corporate fundamentals, improving investor participation and ongoing capital market reforms.
