MARKET LIQUIDITY TIGHTENS AS NGX MARKET CAPITALISATION FALLS TO ₦151.3 TRILLION

The Nigerian equities market experienced tighter liquidity conditions as the Nigerian Exchange (NGX) saw its total market capitalisation decline to ₦151.3 trillion.

The drop reflects renewed selling pressure across several listed stocks, as investors adjusted portfolios amid macroeconomic uncertainty and shifting interest rate expectations.

Market analysts say reduced liquidity has made trading conditions more cautious, with investors showing increased preference for safer asset classes such as fixed income instruments.

The downturn affected key sectors including banking, consumer goods, and industrial stocks, which recorded mixed performances during the trading sessions.

Experts attribute the decline to a combination of profit-taking activities, foreign exchange volatility, and broader economic headwinds affecting investor sentiment.

Despite the slide, analysts maintain that the long-term outlook for the Nigerian stock market remains tied to ongoing reforms, corporate earnings performance, and macroeconomic stability.

They also emphasize the need for policies that deepen market participation and attract more domestic and foreign investment to improve liquidity.

The NGX is expected to continue fluctuating in the short term as investors react to economic data and policy signals.