The Nigerian Exchange Limited (NGX) began the week on a bearish note after a broad-based sell-off led by MTN Nigeria Communications Plc erased approximately ₦2.34 trillion from investors' wealth in a single trading session.
The sharp decline ranks among the market's biggest daily losses in recent months and reflects renewed profit-taking across several heavyweight stocks.
At the close of trading, the NGX All-Share Index fell by 3,647.10 points, representing a 1.57 per cent decline to settle at 228,401.92 points.
Market capitalisation also dropped from the previous session to ₦146.57 trillion, highlighting the magnitude of the losses recorded by listed companies.
The downturn was driven primarily by significant declines in medium- and large-capitalisation stocks.
Among the major companies that weighed heavily on the market were MTN Nigeria, Unilever Nigeria, Lafarge Africa, Cadbury Nigeria, and Nigerian Exchange Group, all of which recorded notable price losses during the trading session.
MTN Nigeria emerged as one of the day's biggest losers after its share price declined by the maximum daily limit of 10 per cent, closing at ₦747 per share.
Learn Africa and Unilever Nigeria also fell by 10 per cent, while Austin Laz & Company, Abbey Mortgage Bank, and Universal Insurance recorded significant declines that further weakened overall market performance.
Market breadth remained firmly negative, with only 12 stocks posting gains compared to 45 decliners.
Analysts noted that the imbalance reflected widespread selling pressure as investors reduced exposure to several previously strong-performing equities.
Despite the broad market decline, a handful of companies managed to finish in positive territory.
UPDC led the gainers with a 9.23 per cent appreciation, followed by Sovereign Trust Insurance, Cornerstone Insurance, Neimeth International Pharmaceuticals, and Livestock Feeds, all of which recorded moderate price increases.
Interestingly, trading activity increased substantially despite the market's negative performance.
Total transaction volume surged by 156.4 per cent to about 996.47 million shares valued at ₦43.73 billion and executed in more than 61,000 deals.
The higher turnover suggests that investors remained active as they adjusted their portfolios amid changing market conditions.
Ikeja Hotels recorded the highest trading volume after investors exchanged over 305 million shares worth more than ₦13 billion.
Access Holdings followed with nearly 290 million shares valued at over ₦6.6 billion, while Dangote Sugar Refinery, Chams Holding Company, and Zenith Bank also ranked among the day's most actively traded stocks.
Market analysts attributed the sell-off largely to profit-taking in several blue-chip stocks after previous gains, combined with cautious investor sentiment driven by prevailing macroeconomic conditions.
Large-cap companies such as MTN Nigeria often have a significant influence on the overall market because of their substantial weighting within the NGX index.
Although the sharp decline affected investor confidence, experts note that periods of market correction are common in equity markets, particularly after sustained rallies.
They believe future market direction will depend on corporate earnings, economic indicators, monetary policy decisions, and investor appetite for Nigerian equities.
The latest downturn comes only weeks after the market experienced periods of strong growth, underscoring the volatility that can accompany equity investing.
Investors are therefore expected to closely monitor upcoming financial results and economic developments that may influence future trading sessions.
For now, the Nigerian stock market remains under pressure as investors reassess positions in major listed companies.
Whether the market rebounds quickly or extends its losses will likely depend on renewed buying interest, corporate performance, and broader economic confidence in the weeks ahead.