By Onu Okorie
Nigerian equities market reversed course dramatically on Tuesday, wiping out about ₦1.88 trillion in value just a day after crossing the historic ₦160 trillion market capitalisation mark, as investors booked profits ahead of the much-anticipated Dangote Refinery Initial Public Offering IPO.
The benchmark All-Share Index (ASI) of the Nigerian Exchange NGX shed 1.17 percent to close at 244,802.11 points, down from Monday’s 247,699.78 points. Market capitalisation followed suit, declining 1.17 percent to settle at ₦158.72 trillion from ₦160.60 trillion, moderating the market’s year-to-date return to 57.31 percent from 59.18 percent the previous session.
The sell-off was particularly pronounced among heavyweight banking stocks and large-cap holding companies, with MTN Nigeria (MTNN) and FirstHoldco among the biggest drags on the index. Market breadth deteriorated sharply, with only four stocks advancing against 62 decliners, underscoring the scale of the pullback.
Ellah Lakes bucked the downward trend to lead gainers, rising 7.07 percent to close at ₦9.85, while NGX Group added 1.38 percent to close at ₦131.90.
Despite the decline in value, trading activity intensified. Volume surged 84.67 percent to 753.17 million shares from 407.85 million the previous day, while turnover rose 2.09 percent to ₦27.82 billion. Total deals climbed to 54,051 from 52,322.
Analysts linked the reversal to portfolio repositioning ahead of the Dangote Refinery IPO, scheduled to open for subscription on 14 September 2026 in what is expected to be one of Africa’s largest capital raises in years. The offer, priced at ₦525 per share, has been described by its promoters as a fully digital retail offer designed to give ordinary Nigerians a direct stake in the refinery.
Tuesday’s pullback came just a day after the market had reclaimed the ₦160 trillion capitalisation threshold on the back of gains in the oil and gas sector, buoyed by rising global crude prices and the listing of new Dangote Sugar Refinery shares. Market watchers say the coming days are likely to remain volatile as investors continue to reposition portfolios ahead of the IPO opening
