Nigerian Stock Market Opens Second Half of 2025 in the Red as Investors Lose N150 Billion

Nigerian Stock Market Opens H2 2025 in the Red

The Nigerian stock market stumbled into the second half of the year on a bearish note, triggering a sharp decline in market capitalization and leaving investors N150 billion poorer. The dip, which reflects ongoing volatility and investor sentiment around profit-taking, highlights the fragile state of investor confidence as Nigeria navigates the second half of 2025. 
According to data from the Nigerian Exchange Limited (NGX), the total market capitalization dropped by 0.20%, falling from ₦75.951 trillion on the previous trading day (Monday) to ₦75.801 trillion at the close of trading on Tuesday. This decline equates to a massive ₦150 billion loss in market value, a significant drop that set the tone for the second half of the year.
The All-Share Index (ASI) followed suit, sliding by 237.34 points to close at 119,741.23, down from 119,978.57 recorded on Monday. This represents a 0.20% decrease, marking a continuation of the cautious profit-taking trend that has affected several stocks over the past few sessions.

Market analysts attributed the downturn to sustained profit-taking activities in several medium- and low-cap stocks. Specifically, shares of University Press, SCOA Nigeria, Thomas Wyatt Nigeria, and over 20 other equities faced intense sell pressure.
While profit-taking is a normal market cycle, the breadth and intensity seen across multiple sectors indicate a broader pattern of investor caution. This may be linked to macroeconomic uncertainties, potential interest rate hikes, global market conditions, and currency fluctuation concerns.
Interestingly, despite the overall market dip, the market breadth remained positive, an indication that more stocks gained than lost during the trading session.
Out of all listed equities, 48 stocks recorded gains, while 23 stocks closed in the red, suggesting that certain investors may still be betting on short-term rebounds or sector-specific opportunities.

A handful of stocks delivered impressive performances, helping to cushion the overall negative sentiment. These stocks posted double-digit gains:

• Honeywell Flour Mill Plc: Led the gainers’ chart with a 10% increase, closing at ₦23.65 per share.
• RT Briscoe Nigeria Plc: Gained 10%, ending the day at ₦2.75.
• McNichols Plc: Rose by 10%, settling at ₦2.53 per share.
• Mutual Benefits Assurance Plc: Climbed 10% to finish at ₦1.21.
• Lasaco Assurance Plc: Nearly matched the top gainers with a 9.96% increase, closing at ₦2.98 per share.

These gains came on the back of renewed investor interest in insurance and consumer goods sectors, where select equities have recently shown resilience.

On the flip side, several stocks suffered significant losses, dragging the market down:

• University Press Plc: Lost 10%, ending at ₦5.04.
• SCOA Nigeria Plc: Declined by 9.83%, closing at ₦4.86.
• Thomas Wyatt Nigeria Plc: Dropped 9.57% to ₦1.70.
• PZ Cussons Nigeria Plc: Slipped 7.89% to close at ₦35.00.
• CHAMS Plc: Declined by 6.38%, finishing at ₦2.20 per share.

The losses were largely driven by profit-booking following strong rallies in the previous quarter, as well as declining investor appetite in the publishing and manufacturing sectors.

Investor activity also slowed significantly on Tuesday, with key trading indicators pointing to reduced appetite:
 527.1 million shares were traded, valued at ₦11.28 billion, across 21,546 deals.
This contrasts sharply with the 2.03 billion shares worth ₦44.34 billion exchanged in 25,172 deals on Monday.
The sharp decline in volume and value suggests that many investors may be holding off on large positions, possibly awaiting more economic clarity or market direction.

Despite the overall slowdown, some stocks saw considerable trading volumes:

• Ellah Lakes Plc topped the activity chart with 46.1 million shares worth ₦385.1 million exchanged.
• UPDC Plc followed closely with 38.5 million shares valued at ₦119.66 million.
• Universal Insurance Plc saw 30.4 million shares change hands, worth ₦18.19 million.
• Nigerian Breweries Plc remained a strong contender in the beverages sector with 28.9 million shares traded at ₦1.75 billion.
• Ja Paul Gold & Ventures Plc recorded 21.75 million shares valued at ₦52.19 million.

These figures show investor interest is still active in select sectors, particularly agriculture, insurance, and FMCGs.

With the market beginning the second half of 2025 on a shaky note, the outlook for the next few weeks will largely depend on several key factors:

• Q2 earnings reports from listed companies are expected soon and could sway investor sentiment depending on performance.
• Monetary policy directions from the Central Bank of Nigeria (CBN) may impact interest rate-sensitive sectors.
• Exchange rate stability and fiscal policy signals will also play a critical role in shaping investor decisions.
• International influences such as oil prices, geopolitical tensions, and global inflation rates may add further volatility.
• Market experts advise investors to exercise caution, diversify their portfolios, and pay attention to fundamental stock analysis rather than follow emotional momentum.
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The Nigerian stock market’s rocky start to the second half of 2025 reflects broader investor anxieties and a cautious outlook on the local and global economy. With ₦150 billion wiped from the market in a single session, stakeholders are hoping for a swift reversal driven by strong corporate results and economic policy clarity. Until then, market participants will need to remain vigilant, strategic, and informed.

By PrimeLineInfo