Nigerian equities suffered a sharp setback on Monday as escalating global tensions—fueled by former U.S. President Donald Trump’s renewed trade rhetoric—rattled investor confidence across emerging markets.
The All-Share Index (ASI) of the Nigerian Exchange (NGX) fell by 1,295.02 points to close at 104,216.87, representing a 1.23% decline from the previous session’s close of 105,511.89. This marks the steepest single-day drop since mid-January when the index plunged by 1,526.1 points.
Market analysts attributed the selloff to a combination of local profit-taking and heightened global uncertainty following Trump’s announcement of sweeping reciprocal tariffs if re-elected. The move, seen as potentially destabilizing to international trade, has raised fears of declining foreign investment and reduced capital flows to frontier economies like Nigeria.
“The market reaction reflects broader concerns about the implications of protectionist policies on trade, investment, and economic stability in developing countries,” one analyst noted.
Market Selloff and Trading Surge
Despite the bearish tone, trading activity surged, with volume climbing to 444.1 million shares—up from 348.1 million shares in the previous session—suggesting increased repositioning or exits by investors.
Market capitalization dropped below the N66 trillion threshold, settling at N65.4 trillion across 15,690 deals. This compares with N66.1 trillion recorded at the close of the prior session.
Heavy Losses Across Board
Top decliners bore the brunt of investor panic, with CORNEST, OANDO, NSLTECH, and RTBRISCOE each hitting the maximum daily loss limit of 10.00%.
OANDO’s sharp fall was particularly notable, as the energy company is among the SWOOT (Stocks Worth Over One Trillion), indicating that even premium-tier stocks were not immune to the downturn.
Gainers Show Resilience
In contrast, a few stocks bucked the trend. VFDGROUP led the gainers’ chart, rising 10.00% to close at N62.70. TOTAL followed closely with a 9.61% gain to N745.00. Other notable gainers included GUINEAINS (+9.52%), INTENEGINS (+9.33%), and ABBEYBDS (+8.88%).
Market Summary
- Current ASI: 104,216.87
- Previous ASI: 105,511.89
- Day Change: -1.23%
- YTD Performance: +1.25%
- Volume Traded: 444.1 million shares
- Market Cap: N65.4 trillion
Top 5 Gainers
- VFDGROUP: +10.00% to N62.70
- TOTAL: +9.61% to N745.00
- GUINEAINS: +9.52% to N0.69
- INTENEGINS: +9.33% to N1.64
- ABBEYBDS: +8.88% to N5.15
Top 5 Losers
- CORNEST: -10.00% to N2.97
- OANDO: -10.00% to N37.80
- NSLTECH: -10.00% to N0.45
- RTBRISCOE: -10.00% to N2.16
- HONYFLOUR: -9.98% to N10.19
Trading Volume Leaders
- FCMB: 65.4 million shares
- FIDELITYBK: 42.5 million shares
- GTCO: 34.4 million shares
- ACCESSCORP: 31.8 million shares
- ZENITHBANK: 31.6 million shares
Trading Value Leaders
- GTCO: N2.3 billion
- ZENITHBANK: N1.4 billion
- ARADEL: N944.6 million
- FIDELITYBK: N818.3 million
- UBA: N709.5 million
SWOOT and FUGAZ Performance
Major stocks in the SWOOT and FUGAZ categories were not spared. OANDO dropped 10.00%, while ARADEL slipped by 0.6%.
Among the FUGAZ banking majors:
- ACCESSCORP: -9.27%
- UBA: -7.60%
- FIRSTHOLD: -6.35%
- GTCO: -5.62%
- ZENITHBANK: -5.01%
Outlook
With the ASI falling below the psychologically important 105,000 mark, market sentiment remains fragile. Trump’s tariff threats have injected fresh geopolitical risks into already inflation-sensitive markets.
Analysts say bargain-hunting in fundamentally sound large- and mid-cap stocks could provide support in the coming sessions. However, caution is likely to prevail as investors weigh global cues alongside domestic earnings results and macroeconomic indicators.
