The threat by the United States of America’s President, Donald Trump, to deploy American troops to Nigeria over alleged religious killings, alongside existing macroeconomic challenges, has triggered a panic selloff on the trading floor of the Nigerian Exchange Limited (NGX), as investors lose over N800 billion within two trading sessions.
According to data from the NGX, the total market capitalisation of listed equities fell sharply by N858 billion, dropping from N97.828 trillion at the close of trading last Friday to N96.970 trillion as of yesterday.
Similarly, the All-Share Index, which tracked the overall performance of quoted companies, declined by 1,496.85 points or 0.98 per cent, moving from 154,126.46 points to 152,629.61 points.
Indeed, yesterday’s session was particularly bearish, as investors collectively lost N612 billion in a single day of trading, with 42 stocks depreciating while 17 others constituted the gainers’ chart.
The downturn cuts across virtually all sectors, primarily driven by sustained selloffs in medium- and large-capitalisation stocks.
Nestle recorded the highest loss with N185, to close at N1,730, while National Salt Company of Nigeria (NASCON) followed with N11, closing at N98. Sky Aviation Handling Company depreciated by N9.95 kobo to close at N89.55 kobo.
Oando declined by N4.80 kobo to close at N43.25 kobo. GTCO also recorded price depreciation, shedding N4.35 kobo to close at N85.15 kobo.
Other major decliners included: NEM insurance, PZ Cussons, Nigerian Breweries, Zenith Bank and United Bank for Africa (UBA), shedding N2.50 kobo, N2.50 kobo, N1.50 kobo, N1.45 kobo and N1 to close at N28, N41.50 kobo, N70, N61.55 kobo and N39.50 kobo respectively.
On the activity chart, all major sectors closed in negative territory, reflecting sustained investor unease. The insurance sector led the decline with a sharp 3.76 per cent loss, followed by the banking sector, which dropped by 2.05 per cent amid heavy selloffs in tier-one financial institutions.
Consumer goods stocks also came under pressure, slipping by 1.49 per cent, while the oil and gas sector fell by 0.78 per cent as investors took profits from recent gains. The industrial sector recorded only a marginal decline of 0.01 per cent, showing relative resilience compared to other segments of the market.
Despite the steep decline in share prices, market activity showed a marginal uptick in trading volume. Investors exchanged a total of 683.920 million shares, representing an increase of 56.418 million units or 8.25 per cent compared to the 627.502 million shares traded in the previous session. However, the rise in volume did little to lift market sentiment, as analysts warned of a persistently gloomy outlook.
Market analysts attributed the bearish trend to a mix of geopolitical, political, and fiscal concerns. Beyond the jitters caused by President Trump’s statement, lingering anxiety over last month’s alleged failed coup attempt and the proposed 30 per cent capital gains tax on equities scheduled to take effect in January 2026 have heightened uncertainty in the market.
Executive Director of Halo Capital Management Limited, Dr Paul Uzum, explained that the market had already been under pressure even before Trump’s Truth Social post.
He noted that rumours of a failed coup had earlier unsettled investors, who feared that any escalation of political instability could lead to a market collapse and massive portfolio losses.
According to him, the prospect of a 30 per cent capital gains tax on equity investments has further dampened sentiment, while Trump’s remarks have only amplified market risks.
Uzum added that investors are increasingly opting for safer havens such as fixed-income securities, as the current environment makes the equities market too volatile and unpredictable.
“When uncertainty around government policy and political risk rises, investors naturally seek stability, and that’s exactly what we’re seeing in the market right now,” he said.
