It’s been a brutal June for the NGX — investors just watched ₦5.69 trillion vanish in one week.

So, the Nigerian stock market is having a rough one. Like, really rough. June has turned into a full-blown rout, with about ₦9 trillion wiped off the market in just three weeks, cbinews.tv reports.

Let’s break down the numbers. Data from the NGX shows the All-Share Index and market capitalisation both dropped 3.59% last week, closing at 235,941.27 points and ₦151.327 trillion respectively.

What does that mean for investors? A massive ₦5.69 trillion loss in a single week. That’s the entire ₦4.59 trillion gain from May — gone. Just like that.

Here’s what the data is saying:

The market closed April at ₦155.994 trillion. By the end of May, it had climbed to ₦160.59 trillion — a solid 3.24% month-to-date gain.

But June? Different story. With the market down 3.59% in just one week, capitalisation has now slipped to ₦151.32 trillion. That’s roughly ₦9 trillion lost in the first three weeks of June alone, or a 5.77% decline month-to-date.

Still, it’s not all doom and gloom long-term. The All-Share Index is still up 51.62% year-to-date, even if that’s down from May’s peak of 60.9%. The problem is, all of May’s gains have been completely erased — and there’s still a week left in June.

Last week was especially red. Only 11 equities actually gained, compared to 40 the week before. Meanwhile, 78 stocks fell — up from 53 previously — while 57 stayed flat.

The biggest casualties? First HoldCo and GTCO, which tanked 20.2% and 15% respectively.

So why are stocks falling?

Market watchers speaking to Nairametrics point to three main reasons.

First up: profit-taking. After a monster rally that saw the market up over 60% year-to-date at its peak, investors are cashing out. Makes sense — when stocks have done triple-digit runs, people lock in gains.

Second: dividend season. Loads of stocks have gone ex-dividend lately and got marked down. Last week alone we saw UACN, Eterna Plc, FCMB Group, Airtel Africa, Dangote Cement, and Champions Breweries all adjusted. Seplat, Julius Berger, CAP, BUA Foods, and Jaiz Bank have also had their turn. All those markdowns drag the index down.

Third: half-year portfolio rebalancing. Fund managers are reshuffling ahead of H2. That often means selling some equities and piling into fixed income, especially with yields looking tasty. Case in point: the latest one-year Treasury Bills auction pulled in over ₦1.86 trillion in subscriptions at 17.34% yield.

There’s also buzz around the Dangote Refinery private placement. It’s shaping up to be one of Nigeria’s biggest corporate capital raises ever. Sources say bids topped $5 billion, mostly from HNIs and institutions. While a lot of that cash is offshore or from institutional pools, some of it likely came from investors selling existing stock positions to free up liquidity — adding more pressure to the market.

What you should know:

Last week alone, ₦5.69 trillion was wiped off the market. That’s about ₦1.14 trillion per trading day. On Friday, market cap fell another ₦938.75 billion to ₦151.33 trillion, with year-to-date returns moderating to 51.62%.

And there’s a new twist from the NGX. They’ve introduced rules saying a minimum number of shares must be traded before a stock’s price can actually move. Trades below that threshold? No price change. It hasn’t hit the market hard yet, but traders reckon it could seriously affect price discovery going forward, cbinews.tv reports.

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