Banking Sell-Off: Nigerian Stocks Lose KSh 68.06B ($525.55M) as NGX All-Share Index Slips 0.44%Banking Sell-Off: Nigerian Stocks Lose KSh 68.06B ($525.55M) as NGX All-Share Index Slips 0.44%

The NGX All-Share Index fell 1,107.28 points, or 0.44%, to close at 252,882.78 points from 253,990.06 on Tuesday, according to daily trading data from the Nigerian Exchange. Market capitalisation dropped by the same margin to N164.19 trillion, about KSh 15.54T ($120.02B), from N164.91 trillion.

The pullback matters to Kenyan and East African investors because Lagos is one of Africa's most liquid frontier markets and often sets the tone for regional portfolio flows.

Bank shares lead the decline

Banking stocks carried most of the selling. The NGX Banking Index fell to 2,513.96 points from 2,574.61, with Fidelity Bank down 3.18%, Guaranty Trust Holding Company down 1.79%, Wema Bank down 1.61% and Zenith Bank down 0.41%.

First Holdco, the parent of First Bank of Nigeria, posted the steepest loss of the day, falling the maximum 10% to N139.50 from N155.00. As Mwenendo earlier reported, Zenith Bank's half-year results showed higher tax eating into after-tax profit, a pressure shared across the sector.

United Bank for Africa moved the other way, climbing 6.83% to N43.00 from N40.25 and placing fourth among the day's top gainers.

Insurers and smaller counters lead the gainers

Sovereign Trust Insurance rose the 10% daily maximum to N1.98, UPDC Real Estate Investment Trust gained 9.61% to N21.10 and Austin Laz & Company added 9.21% to N2.61. Critical Minerals Financing Corp rounded off the top five with a 5.71% rise to N3.33.

Market breadth was negative, with 30 stocks declining against 26 advancing. Among the losers, Tripple Gee and Company fell 5.51%, while eTranzact International, Royal Exchange and Fortis Global Insurance each lost 4.76%.

Trading volume collapses while deals rise

Turnover fell sharply. Volume dropped 92.27% to about 404.08 million shares from 5.23 billion on Tuesday, although the number of deals rose 8.61% to 38,970. The previous session's volume appears to have been inflated by unusually large trades, but no explanation was published alongside the data.

Not every gauge fell. The NGX Consumer Goods Index edged up to 4,019.16 points, helped by gains of 4.44% in Champion Breweries and 1.49% in Dangote Sugar, while the NGX Growth Index rose to 26,896.25 points.

High rates keep valuations under scrutiny

The Central Bank of Nigeria's Monetary Policy Rate stands at 23%, which keeps fixed-income returns attractive and puts pressure on equity valuations after a long rally. Mwenendo earlier reported on how Nigeria's 61% stock rally left investors facing a tougher fourth quarter, with gains concentrated in fewer stocks.

For investors in Nairobi weighing exposure to Lagos, the session shows how quickly bank-led profit-taking can reverse gains, even when the wider market remains up strongly for the year. Naira figures are converted at about N1,368 to the US dollar and KSh 129.50 to the dollar.