Nigerian Stock Market Tumbles N2.8 Trillion Amid US President’s Comments and Market Pressure
Nigerian investors experienced significant losses as the stock market suffered a sharp decline during the first week of November, with the Nigerian Exchange Limited (NGX) shedding N2.8 trillion in market value amid domestic and international concerns.
The market recorded consecutive losses across all five trading sessions from November 3 to November 7, following U.S. President Donald Trump’s designation of Nigeria as a ‘Country of Particular Concern’ and subsequent threat to suspend U.S. aid over alleged religious persecution.
Market Performance and Impact The NGX All-Share Index dropped from 154,126.46 points to 153,739.11 points, while market capitalization declined from N97.829 trillion to N97.582 trillion on Monday’s trading session. The year-to-date returns moderated to +49.37 percent, reflecting growing investor caution.
Trading activity for the week saw 3.575 billion shares worth N107.011 billion exchanged in 146,429 deals, marking a decrease from the previous week’s 7.479 billion shares valued at N145.429 billion. The Financial Services sector dominated trading, accounting for 82.39% of volume and 61.59% of value.
Corporate Developments Notable during this period was the listing of Elektron Finance SPV Plc’s N4.64 billion infrastructure bond, featuring a 22% fixed annual coupon rate and 15-year maturity. Additionally, MTN Nigeria experienced an 8.3% decline in share value, though the company announced an interim dividend of N5 per share following strong nine-month earnings.
Market Response and Expert Analysis Dr. Muda Yusuf, an economist, warned of potential market volatility and declining investor confidence. However, Adebayo Adeleke, former General Secretary of ISAN, offered a more optimistic view, noting that the market’s reduced dependence on foreign investors could limit long-term damage.
Looking Forward Despite current pressures, some analysts anticipate a potential market correction in the coming week, though near-term sentiment remains cautious. The market’s performance continues to reflect broader economic uncertainties while demonstrating resilience in key sectors.
Twenty equities appreciated during the week, while seventy-five depreciated, indicating widespread market pressure but also highlighting opportunities in select stocks. NCR (Nigeria) Plc led gainers with a 20.94% increase, while Sovereign Trust Insurance Plc recorded the largest decline at 28.21%.
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