Kayode Tokede

The Nigerian stock market sustained its downward trend in early September 2025, dropping by N985.72 billion in the first two days trading activities on  investors’ profit-taking in  large-mid capitalised companies.

The market capitalisation that opened trading in September 2025 at N88.769 trillion, dropped by N985.7 billion or 1.11 per cent to close yesterday at N87.784 trillion.

In the first day trading activities in September 2025, the market capitalisation dropped by N362.8 billion or 0.41 per cent to close at N88.407 trillion on investors profit-taking in Lafarge Africa Plc, Zenith Bank Plc and 31 others.

The following day, the market capitalisation depreciated by N622.95 billion or 0.7 per cent to close at N87.784 trillion amid profit-taking in Lafarge Africa Plc, Guaranty Trust Holding Company Plc (GTCO) and 46others.  

With the second consecutive decline, the investors in Lafarge Africa have lost 14.7per cent of their investment as the cement producing company stock price plunged to N110.85 per share as of September 2, 2025 from N130 per share it closed for trading in August 2025. 

On this, the Nigerian Exchange Limited All-Share Index plunged by 1,557.86 basis points or 1.11per cent to close at 138,737.64 basis points from 140,295.50 basis points it closed for trading August 2025.

Major sectors such as NGX Banking Index fell by 1.93 per cent to close at 1,499.06 basis  points while the NGX Oil & Gas depreciated by 0.36per cent to close at 2,372.94basis points.

On market outlook for this week, analysts at United Capital Plc had  stated that “equity market could be cautiously optimistic, driven by expectations of a potential interest rate cut from the Central Bank of Nigeria due to moderating inflation, alongside a relatively stable Naira and an increase in foreign reserves.”

On market outlook, Afrinvest Limited said, “we expect a cautious trading session as lingering profit-taking and weak investor sentiment exert pressure on key sectors, likely extending the market’s downward trend.”

Cowry Asset Management Limited noted that “we anticipate a mixed performance in the Nigerian equities market, with cautious sentiment likely to dominate amid tight liquidity and lingering macroeconomic pressures. Sell pressure in the Banking and Industrial Goods sectors may persist, while bargain-hunting in oversold counters, particularly within Consumer Goods and Insurance could drive mild recoveries.

“Overall, the market is expected to trade range-bound with a slight bearish bias, barring any major policy pronouncements or corporate catalysts. However, we continue to advise investors to position in stocks with strong fundamentals.”

In the near term, analysts at Cordros Research added that,  “the absence of clear catalysts is likely to keep sentiment cautious, with selective interest concentrated in fundamentally strong equities.

“Over the medium term, sentiment will likely be shaped by macroeconomic developments — including growth, inflation, and policy direction — as well as movements in fixed income yields, which could further influence asset (re)allocation decisions between equities and debt instruments.”

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