Despite the war-induced turmoil across global financial markets, the Nigerian Exchange Limited (NGX), yesterday, defied the negative sentiment as market capitalisation rose by N710 billion, even as major international bourses recorded steep losses on escalating Iran war fears.

Global equities came under intense pressure as investors reacted to heightened geopolitical tensions and surging crude oil prices.

For instance in the United States’ the Dow Jones industrial average tumbled by more than 1,200 points, representing a drop of about 2.5 per cent at the close of trading.

The broader S&P 500 declined roughly 2.4 per cent, while the technology-heavy Nasdaq Composite fell by close to 2.7 per cent amid widespread sell-offs.

European markets mirrored the downturn, with the STOXX Europe 600 closing significantly lower as investors trimmed exposure to risk assets. Germany’s DAX and the UK’s FTSE 100 also ended firmly in the red, weighed down by concerns over energy supply disruptions and inflationary pressures.

Asian markets were not spared, as Japan’s Nikkei 225 dropped more than 3 per cent, while South Korea’s KOSPI recorded a sharper decline amid heightened volatility across the region.

However, at the close of transactions on the NGX, market capitalisation appreciated by N710 billion or 0.56 per cent from N125.488 trillion recorded on Monday to N126.198 trillion while the all-share index also rose by 1,107.73 to 196,621.96 points from 195,514.23 recorded on the previous day.

Volume of trades increased by 30.901 million, representing 3.91 per cent as investors traded 820.745 million shares against 789.848 million reported the previous day. Value of transactions also went up by 23.27 per cent to settle at N43.239 billion in 84189 deals .

On the price movement chart, SUNU Insurance led gainers table with 10 per cent to close at N4.84 kobo while NGX group followed with a gain of 9.97 per cent to close at N150. Oando Plc added 9.96 per cent to close at N50.25 kobo, Sovereign Trust Insurance increased 9.88 per cent to close at N2.67 kobo.

On the contrary, Fidson health care topped losers chart with 10 per cent to close at N81.Mcnichols followed with a loss of 9.96 per cent to close at N6.87 kobo. Mecure fell by 9.95 per cent to N68.30 kobo. Deapcapital fell by 8.17 per cent to close at N6.52 kobo.

Trading in the shares of FTGInsurance led market activities with 58.398 million shares valued at N65.989 million, Sterling Bank followed with account of 50.587 million shares cost N411.184 million, Japaul Gold exchanged 44.026 million shares N176.173 million, Zenith Bank traded 39.554 million shares cost N3.640 million, Jaiz Bank exchanged 37.420 million shares worth N468.187 million

Market operators however cautioned that while the NGX showed resilience in the immediate term, the domestic market does not operate in isolation. They noted that historical trends indicate that prolonged global instability and shifts in foreign portfolio flows could eventually impact the local bourse if geopolitical tensions persist.

Managing Director of Crane Securities Limited, Mike Ezeh pointed out that the Nigerian market is not entirely insulated from global developments, recalling the 2009 market shocks. However, he emphasised that as an emerging market with strong-performing companies, Nigeria’s market is showing impressive results.

Ezeh explained that while events such as the ongoing situation in Iran quickly impact advanced markets, their effect on Nigeria will likely take longer to materialize, giving the market time to stabilise.

He added that the current climate is attracting high-net-worth investors, including foreign participants, indicating growing international confidence in the nation’ equities market.