The Nigerian Trade (NGX) started the week on a bearish word because the All-Share Index (ASI) declined by 0.25% to shut at 153,739.11 factors, wiping out about N244.9 billion in market worth.
The downturn was pushed by selloffs in medium and large-cap shares throughout the banking, oil & gasoline, and shopper items sectors.
Market capitalization fell from N97.8 trillion to N97.5 trillion, reflecting renewed investor warning after a powerful rally in October.
Though some merchants initially linked the pullback to heightened geopolitical noise, together with a viral put up by U.S President Donald Trump threatening to “ship troops” to Nigeria over alleged spiritual killings, market analysts instructed Nairametrics that the decline was largely resulting from routine profit-taking after weeks of sturdy features.
A media report from one of many widespread international enterprise media web sites had prompt Naira belongings have “tumbled” over the menace from Trump. Nevertheless, Nairametrics analysis suggests this was not the case.
Regardless of losses data, most had been modest and didn’t present any signal of a sell-off as could have been construed.
October had ended as one of many best-performing months this yr, with shares rising 8%, second solely to July’s efficiency. The market had snapped a shedding streak final Friday however didn’t maintain the momentum as earnings outcomes triggered recent promote strain.
In the meantime, the alternate price between the naira and the U.S. greenback weakened barely to N1,438/$1 on the official market on Monday, in comparison with N1,422.2/$1 final Friday.
Regardless of the gentle pullback, the naira stays on a outstanding run, having recorded its finest month-to-month efficiency in over 18 months in October.
Monday’s shut nonetheless ranks because the second-best day since Might 2024, underscoring a interval of renewed FX stability.
Market breadth remained destructive with 24 gainers and 39 losers.
- Union Dicon Salt Plc (+9.93%) topped the gainers’ chart, adopted by Omatek Ventures Plc (+9.92%). On the flip aspect, Honeywell Flour Mills Plc (-10.00%) and Northern Nigeria Flour Mills Plc (-9.98%) led the laggards.
- Buying and selling exercise was upbeat, as whole quantity rose by 18% to 627 million items, valued at N25.1 billion. UBA Plc dominated each quantity and worth charts, exchanging 136 million shares price N5.53 billion.
Regardless of the pullback, analysts say the market stays in a broadly optimistic development, supported by sturdy company earnings and enhancing investor sentiment.