Nigerian Exchange faces bearish trend and rule postponement

The Nigerian Exchange (NGX) is experiencing a period of significant volatility and bearish trends. Recent market activity has seen the All-Share Index (ASI) decline, with market capitalization dropping by over N106 billion in single sessions due to sustained profit-taking and selling pressure, particularly in the banking and insurance sectors. Despite these losses, trading volume saw a massive surge in mid-August 2026, increasing by over 126 percent as investors exchanged approximately N176 billion worth of shares.

Market concentration remains high, with just 24 companies controlling over 70 percent of the total market value. Heavyweights such as Airtel Africa, MTN Nigeria, and Dangote Cement continue to heavily influence index movements. Analysts attribute recent market shifts to several factors, including the Central Bank of Nigeria’s policy allowing individuals to trade in Open Market Operations (OMO) bills and the anticipated implementation of a revised equities pricing methodology.

Regarding the latter, the NGX has officially postponed the rollout of its new pricing rules, which were intended to change how trading volumes influence official share prices. The Exchange stated the reform is “postponed; not shelved,” and will continue to operate under the existing framework while further engagement occurs.