Nigerian equities are within the crimson once more as panic-driven sell-offs wipe out roughly N1.8 trillion in market worth inside simply 4 buying and selling classes this month.
The NGX All-Share Index (ASI) slid for the fourth consecutive day, dropping from 154,123.62 factors ultimately Friday’s near 150,026.55 factors by Thursday, trimming year-to-date features from 49.74% to 45.76%.
In keeping with traders who spoke to Nairametrics, the panic sell-offs are linked to the federal authorities’s proposed 25% capital features tax set to take impact in January 2026, which can apply to income above a N150 million threshold.
Native fund managers additionally level to profit-taking methods and reallocation of funds into fixed-income markets as a part of the explanation behind the downturn.
Moreover, geopolitical tensions following U.S. President Donald Trump’s risk of army motion in opposition to Nigeria are being cited as a possible driver of overseas investor exits.
Banking and shopper shares lead the rout
The banking sector, which dominated worth traded all through the week, bore the heaviest losses.
ACCESSCORP, GTCO, ZENITHBANK, and ETI all recorded steep declines as giant institutional traders pared down positions.
Regardless of gentle resilience from UBA, FCMB, and WAPCO, total sector sentiment stayed destructive.
Client names resembling DANGSUGAR, INTBREW, GUINNESS, and TRANSCORP additionally got here below strain, reflecting broader investor warning amid considerations about rising This fall prices and slowing shopper demand.
Midweek weak spot prolonged to MTNN and TRANSCORP, deepening the index’s 1.19% single-day plunge on Wednesday.
Market turnover stayed sturdy, with over 2.4 billion shares price N77 billion altering fingers throughout the week—an indication that traders are rotating quite than exiting fully.
Analysts describe the development as a shift from high-beta equities to money and defensives, as portfolio managers search shelter from fiscal uncertainty forward of the CGT rollout.
Capital features tax jitters spook traders
A number of traders who spoke with Nairametrics stated the sustained sell-off stems largely from worry surrounding the brand new 25% capital features tax (CGT) on share gross sales above N150 million, scheduled to take impact in January 2026.
Institutional traders, significantly high-net-worth merchants and overseas funds, are taking revenue now to keep away from what they describe as a “potential 25% haircut” on future features.
Native fund managers have warned that the legislation might immediate capital flight and a short lived pullback in liquidity if not reviewed, erasing the robust This fall momentum that lifted October returns by over 8%, one of many yr’s finest months.
Revenue-taking and macro headwinds
Analysts additionally attribute the downturn to aggressive profit-taking following October’s rally and to capital rotation into the fixed-income market, the place yields stay engaging and up to date auctions have been closely oversubscribed.
Nigeria’s newest Eurobond issuance was reportedly 200% oversubscribed, underscoring renewed investor urge for food for safer naira-denominated belongings.
Including to the unease, U.S. President Donald Trump’s threats of army motion in opposition to Nigeria—in response to alleged human-rights violations—sparked speculative sell-offs by overseas traders apprehensive about geopolitical danger.
What’s subsequent
The market’s tone stays bearish heading into Friday’s session, with merchants awaiting cues from the fiscal authorities and potential clarifications on the implementation of the CGT rule.
If losses persist, November might mark the worst-performing month of 2025, reversing a lot of the optimism that adopted the October rally.
The proposed 25% capital features tax (on features above N150 million) is predicted to be carried out by January 2026, pending last legislative approval.
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