Stock Market Down 3.6% As Investors Liquidate Ahead Of Dangote Refinery IPO

Profit-taking and positioning for the Dangote Refinery Initial Public Offering (IPO), pushed the domestic stock market lower last week, with the All-Share Index (ASI) falling for five straight sessions to close down 3.59 per cent at 235,941.27 points on Friday.

Market capitalisation shed N5.643 trillion to finish the week at N151.327 trillion as investors locked in gains across several large-cap stocks.

Market breadth closed negative, with 11 advancers against 78 decliners.

Speaking on market performance, the MD/CEO of Globalview Capital Limited, Aruna Kebira said “typically, by June, we see a market slowdown. The fourth quarter results, which are reported in February, March, and April, tend to set the tone, with dividends following shortly after.”

He explained that the market dynamics between January and May are crucial, as dividends get distributed and marked, leading to a temporary lull in market activity.

“With the second quarter results expected by the end of July, we have a bit of a gap where investors are uncertain, which can lead to downward pressure on the market,” he added.

Aruna highlighted an interesting trend in investor behavior, mentioning that many individuals are liquidating their positions to prepare for the upcoming Dangote Refinery public offering.

On market outlook, Imperial Asset Managers Limited said, “looking ahead, participants will be guided by the commencement of half year 2026 earnings releases and accompanying dividend signals, the trajectory of oil prices and their bearing on FX stability, and Central Bank of Nigeria (CBN) liquidity management. A selective investment stance remains appropriate: investors are advised to focus on fundamentally sound, dividend-paying names and to view the indiscriminate selling in quality banking stocks as a potential source of value, while remaining disciplined given the prevailing thin liquidity.”

Futureview Limited noted that “we expect investors to trade cautiously, focusing on fundamentally sound stocks with attractive valuations while relying strictly on verified market data and news.”

Investor sentiment, as measured by market breadth closed negative as 11 stocks advanced, while 78 declined. Cornerstone Insurance emerged the highest price gainer of 11.01 per cent to close at N6.05, per share.

Academy Press followed with a gain of 8.72 per cent to close at N8.10, while Conoil rose by 8.25 per cent to close at N210.00, per share.

On the other side, International Energy Insurance led the losers’ chart with 28.83 per cent to close at N5.06, per share. First Holdco followed with a decline of 20.29 per cent to close at N55.00, while John Holts dipped by 17.65 per cent to close at N11.20, per share.