The Nigerian Exchange (NGX) recorded a sharp selloff in banking stocks on Monday as investors exited positions over dividend concerns, which triggered approximately N1.3 trillion losses overshadowing the first day of extended trading hours.
Market data for April 27, 2026 showed the All-Share Index (ASI) declined by 0.94% to 223,602.29 points, pulling the year-to-date return down to +43.69% and erasing approximately N1.3 trillion from market capitalization, which closed lower at N143.97 trillion.
Total volume traded rose to 678.17 million units across 82,838 deals, with a market value of N44.14 billion, reflecting the impact of longer trading hours that commenced today as well as heightened sell pressure across key banking names.
However, market analysts attributed the sharp downturn to dividend-related concerns that triggered a broader wave of caution among investors, particularly in the banking sector, amid longer trading hours aimed at boosting liquidity and participation.
Market participants say the selloff was largely driven by fears around dividend payouts and delayed earnings by some banks. Analysts noted that sentiment remained weak despite the structural shift introduced by extended trading hours.
He pointed out that GTCO, Zenith, Wema, Stanbic, etc declared increased payout to shareholders, insisting that the fundamentals of the banking system remain strong and should not be judged by isolated development.
Trading data shows that banking stocks were the primary drivers of the market decline, recording steep losses across major counters. The negative sentiment persisted despite increased trading activity linked to the extended hours.
Although volumes surged to 678.17 million units valued at N44.14 billion across 82,838 deals, analysts emphasized that the increased activity reflected sell pressure and investor repositioning rather than optimism.
The decline highlights how sensitive investors are to dividend expectations, especially following recent regulatory directives affecting the banking sector.
While the newly introduced trading window—from 9:00 a.m. to 4:00 p.m.—is expected to improve liquidity over time, it also provided more room for investors to react swiftly to corporate disclosures.
Market watchers maintain that clearer guidance on earnings and dividend policies will be key to restoring confidence in one of the exchange’s most influential sectors.
