On Monday, investors pushed the Nigerian Exchange (NGX) into a sharp decline as they sold banking stocks aggressively.
They wiped about ₦1.3 trillion from market value because dividend uncertainty dominated sentiment.
Meanwhile, the market mood weakened further even as extended trading hours began.
Banking Stocks Drag NGX Lower
By April 27, 2026, the All-Share Index dropped 0.94% to 223,602.29 points.
As a result, year-to-date returns fell to +43.69%, while capitalisation slid to ₦143.97 trillion.
In addition, trading activity surged as investors used the longer 9:00 a.m. to 4:00 p.m. window.
Overall, 678.17 million shares changed hands in 82,838 deals worth ₦44.14 billion.
However, higher volumes reflected panic selling rather than genuine market confidence.
Banking stocks led the downturn because investors reacted strongly to dividend fears.
Consequently, analysts linked the selloff to payout concerns and delayed earnings reports.
David Adonri explained that investors drove turnover higher but still pushed banks down 6.49%.
He also noted that investors dumped UBA on full offer and exited Access Bank positions.
Furthermore, he stressed that extended trading hours did not cause the market decline.
Dividend Fears Fuel Investor Exit
Similarly, Aruna Kebira attributed the selloff to UBA’s absence of dividend declaration.
He warned that investors now expect similar pressure across other major banks.
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However, he argued that markets may have overreacted despite strong fundamentals.
For example, GTCO, Zenith Bank, and Wema Bank increased their dividend payouts.
Meanwhile, First HoldCo fell 10% to ₦67.50 as sellers dominated trading.
Likewise, UBA dropped 10% to ₦49.50 under heavy selling pressure.
In addition, Access Holdings lost 9.9%, while Fidelity Bank fell 9.87%.
At the same time, Zenith Bank led volumes with over 76 million shares traded.
Wema Bank and Stanbic IBTC also attracted notable trading interest.
Nevertheless, only a few banking stocks resisted the broader bearish trend.
CBN Rules Deepen Market Caution
On the regulatory side, the Central Bank of Nigeria tightened dividend rules.
Specifically, it required banks to clear forbearance issues before paying dividends.
As a result, UBA’s no-dividend stance unsettled investors and triggered selling.
Finally, market participants said confidence depends on clearer earnings and dividend signals.
