The Nigerian Exchange Limited (NGX) closed September with a two-day sell-off that wiped N894.36 billion from investors’ wealth as traders took profits from recent gains.
The decline came during the final two trading sessions of the month.
The NGX All-Share Index fell by 0.29 percent on Tuesday before losing another 0.28 percent on Wednesday.
Despite the late-month sell-off, the market still finished September higher overall.
The All-Share Index ended the month at 251,211.67 points, representing a 2.87 percent monthly gain. Market capitalisation also increased by about N5.37 trillion during September.
NGX Market Capitalisation Falls by N894bn
The first wave of profit-taking emerged on Tuesday, September 29.
The All-Share Index declined by 721.91 points, or 0.29 percent, to close at 251,913.20 points.
The decline reduced equity market value by approximately N468.63 billion.
Selling pressure continued into Wednesday, September 30.
The benchmark index dropped another 701.53 points, or 0.28 percent, to close at 251,211.67 points.
Market capitalisation fell from N163.53 trillion to N163.10 trillion, representing a one-day reduction of N425.73 billion.
Combined, the two sessions erased N894.36 billion in market value.
The movement reflected increased selling pressure in several large-cap stocks after the market’s strong performance earlier in September.
Banks and MTN Nigeria Face Heavy Selling Pressure
Large-cap banking and telecommunications stocks were among the major contributors to the decline.
On Wednesday, MTN Nigeria Communications fell 3.01 percent.
Access Holdings declined 2.25 percent, while United Bank for Africa and GTCO fell 1.20 percent and 0.38 percent respectively.
Fidelity Bank recorded an even sharper decline, falling 6.07 percent during the session. Dangote Sugar Refinery also declined 1.45 percent, while Stanbic IBTC and other major stocks recorded losses.
The pressure was not limited to financial stocks.
The NGX Premium Index dropped 1.02 percent on Wednesday to 31,771.57 points.
However, some equities resisted the broader downturn.
BUA Cement rebounded strongly, gaining N9.20 to close at N297 per share. Its performance helped push the NGX Industrial Index up by 0.66 percent during the session.
Trading Activity Remains Strong
The sell-off occurred alongside substantial trading activity.
On Tuesday, investors traded 548.65 million shares in 47,203 deals.
Activity increased sharply on Wednesday, when more than 1.03 billion shares changed hands across more than 44,000 transactions.
VFD Group was among the most actively traded stocks on Wednesday, followed by UAC of Nigeria, Abbey Mortgage Bank, Chams Holding Company and GTCO.
The increase in volume suggests that the market remained liquid despite the decline in the benchmark index.
It also indicates that investors were actively repositioning their portfolios rather than simply withdrawing from the market.
September Still Ends With Strong Market Gain
The two-day decline did not reverse the NGX’s overall September performance.
The All-Share Index started the month at 244,199.39 points and ended at 251,211.67 points.
That represented a monthly increase of 7,012.28 points, or 2.87 percent.
Equity market capitalisation also rose from approximately N157.74 trillion at the end of August to N163.10 trillion at the end of September.
The increase represented about N5.37 trillion in additional market value during the month.
The September performance also extended the market’s gains for the year.
By the end of September, the NGX All-Share Index had recorded a 61.43 percent year-to-date return, according to Network Capital’s market report.
Therefore, the late-month sell-off came after a substantial period of gains.
Investors Take Profits After September Rally
Profit-taking typically occurs when investors sell shares after prices have appreciated, allowing them to realise gains.
The September market performance provided a backdrop for such activity.
The index reached levels above 252,000 points during the final week before retreating during the last two sessions.
It closed at 252,150.01 points on September 24 and 252,113.41 points on September 25 before rising further on September 28.
The index subsequently fell to 251,913.20 points on September 29 and 251,211.67 points on September 30.
The pattern shows that the N894.36 billion reduction occurred within a broader month that remained positive.
Market Breadth Shows Selling Pressure
Market breadth also reflected the pressure on equities.
On September 30, 28 stocks declined while 25 advanced, according to Proshare’s market report.
The negative movement was concentrated in several heavyweight stocks, including Fidelity Bank, MTN Nigeria, Access Holdings, HBMNG, Dangote Sugar, UBA and GTCO.
However, other stocks continued to attract buying interest.
Haldane McCall gained 10 percent, while several consumer, financial and other smaller-cap stocks also recorded advances.
This suggests that the sell-off was not uniform across the entire market.
What the NGX Performance Means for Investors
The September figures show two different trends.
On one hand, the market experienced significant profit-taking during the final two sessions.
On the other hand, the broader monthly performance remained positive.
The N894.36 billion reduction therefore needs to be viewed against the N5.37 trillion increase recorded across September.
Trading activity also remained substantial, with September recording 1.14 million deals and N911.15 billion in equity value traded, according to Network Capital’s monthly market report.
The next phase of trading could therefore be shaped by portfolio repositioning, corporate results and investors’ assessment of valuations following the strong year-to-date market gains.
For now, the NGX has entered the final quarter of 2026 after a strong September performance, although the last two sessions showed that investors were willing to lock in gains as the month ended.
