The Nigerian Exchange (NGX) has witnessed an unusual market correction, with the All-Share Index (ASI) declining for four consecutive trading sessions since June 1, 2026. This period coincided with the market's transition to the T+1 settlement cycle.

The cumulative losses have resulted in a significant drop in market capitalization, which fell by N5.14 trillion from N160.50 trillion at the start of the week to N155.36 trillion by Thursday's close. The year-to-date return for the market has consequently retreated to 55.66%, down from a high of 61.38% recorded on May 25, 2026.

The market's all-time high of 252,508 points, reached on May 13, 2026, has seen over 10,000 index points erased. This rapid correction has unsettled investors in a market that had been a global top performer for much of the past three years.

Analysts Tajudeen Olayinka (CEO, Wyoming Capital Partners), David Adonri (CEO, Hicap Securities), and Garba Kurfi (CEO, APT Securities) have identified five key pressures driving this decline, emphasizing that these factors do not signal a structural breakdown in the market's long-term trajectory.

Market Performance Data

The recent sell-off has been broad-based, affecting most sectors except industrial goods, which remained relatively stable. The daily losses were as follows:

• Monday, June 1 (Day 1): ASI fell 1.13% to 247,560.66 points; N1.81 trillion erased.
• Tuesday, June 2 (Day 2): ASI fell 0.35% to 246,686.66 points; N478.7 billion erased.
• Wednesday, June 3 (Day 3): ASI fell 1.44% to 243,132.61 points; N2.28 trillion erased.
• Thursday, June 4 (Day 4): ASI fell 0.37% to 242,227.31 points; N580.65 billion erased.

In total, the benchmark ASI declined by 10,281 points over the four sessions, with the market's year-to-date return falling from 61.38% to 55.66%.

Impact on Major Equities

The sell-off has disproportionately affected high-capitalization stocks that previously led the market's rally. Notable declines include:

• MTN Nigeria lost 6.95% on Wednesday.
• Lafarge Africa shed 9.97% on Wednesday.
• First HoldCo declined 6.80% on Wednesday, with a partial rebound of 6.70% on Thursday.
• Aradel Holdings, which had reached an all-time high of N2,024 in April, lost 9.51% on Thursday, closing at N1,749.90 and erasing N3.73 billion in value in a single session.
• NGX Group fell 7.71% on Wednesday before recovering 4.54% on Thursday.

Analyst Insights on Market Correction

Analysts have pinpointed five primary forces contributing to the current market correction.

1. T+1 Settlement Cycle Impact

Tajudeen Olayinka highlighted that the transition to the T+1 settlement cycle has created an operational funding gap for major institutional buyers, including pension fund administrators (PFAs), asset management companies, and institutional investors trading through custodians.