Nigerian stocks shed N244.9bn amid Trump’s threat
Equities investors yesterday recorded about N244.9 billion loss at the close of trading on the floor of the Nigerian Exchange (NGX) as the US President Donald Trump’s threat on Nigeria sparked brief jitters. On Monday, the first trading day after the weekend’s threat by Trump, the NGX All-Share Index and Market Capitalization dropped from Friday’s […]
Equities investors yesterday recorded about N244.9 billion loss at the close of trading on the floor of the Nigerian Exchange (NGX) as the US President Donald Trump’s threat on Nigeria sparked brief jitters.
On Monday, the first trading day after the weekend’s threat by Trump, the NGX All-Share Index and Market Capitalization dropped from Friday’s highs of 154,126.46 points and N97.829 trillion respectively to 153,739.11 points and N97.582 trillion.
The record dip in Nigeria’s stock market in the first trading day in November impacted its returns year-to-date (YtD) which stood lower at +49.37 percent
Trump had, on Friday, flagged Nigeria as a ‘Country of Particular Concern,’ and followed up with an invasion threat on Saturday.
The US President vowed to cut off all US aids to the nation over of the government fails to act fast on the alleged genocide against Christians.
And ahead of trading this new week, there were fears that the US President’s fiery comments might raise the risk premium on Nigerian assets while threatening to erode recent gains achieved by the nation’s reforms.
At the closing of the trading on Monday,
the All-Share Index (ASI) declined by 0.25% to close at 153,739.11 points, wiping out about N244.9 billion in market value.
The downturn was driven by selloffs in medium and large-cap stocks across the banking, oil & gas, and consumer goods sectors.
Market capitalization fell from N97.8 trillion to N97.5 trillion, reflecting renewed investor caution after a strong rally in October.
October had ended as one of the best-performing months this year, with stocks rising 8%, second only to July’s performance. The market had snapped a losing streak last Friday but failed to sustain the momentum as earnings results triggered fresh sell pressure.
Meanwhile, the exchange rate between the naira and the U.S. dollar weakened slightly to N1,438/$1 at the official market on Monday, compared to N1,422.2/$1 last Friday.
Despite the mild pullback, the naira remains on a remarkable run, having recorded its best monthly performance in over 18 months in October.
Monday’s close still ranks as the second-best day since May 2024, underscoring a period of renewed FX stability.
Market breadth remained negative with 24 gainers and 39 losers.
Union Dicon Salt Plc (+9.93%) topped the gainers’ chart, followed by Omatek Ventures Plc (+9.92%). On the flip side, Honeywell Flour Mills Plc (-10.00%) and Northern Nigeria Flour Mills Plc (-9.98%) led the laggards.
Trading activity was upbeat, as total volume rose by 18% to 627 million units, valued at N25.1 billion.
UBA Plc dominated both volume and value charts, exchanging 136 million shares worth N5.53 billion.
Despite the pullback, analysts say the market remains in a broadly positive trend, supported by strong corporate earnings and improving investor sentiment.