The Nigerian Exchange (NGX) began the week in negative territory, with the All-Share Index (ASI) dropping by 0.25% to close at 153,739.11 points, wiping off approximately N244.9 billion in market value.
The decline was attributed to profit-taking across medium- and large-cap stocks, particularly in the banking, oil and gas, and consumer goods sectors.
Market capitalization fell from N97.8 trillion to N97.5 trillion, signaling a mild correction after weeks of strong gains. This comes on the heels of a robust October rally, during which the market gained nearly 8%, its second-best monthly performance of the year after July.
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Although some traders initially tied the downturn to geopolitical tension — particularly a viral post by U.S. President Donald Trump, who threatened to “send troops” to Nigeria over alleged religious killings — analysts quickly dismissed this as a major factor behind Monday’s decline.
The Nigerian stock market has historically shown a high degree of non-reaction to global political headlines, especially those perceived as external or short-term. Despite media reports claiming that “Naira assets tumbled” in response to Trump’s remarks, data did not support any unusual market movement.
The modest pullback is believed to be purely a case of investors taking profits after a strong month, as analysts note that there’s no evidence of panic or foreign flight.
Indeed, trading data published by NairaMetrics reflected stability rather than turmoil. While the ASI slipped slightly, trading volume rose by 18%, reaching 627 million units valued at N25.1 billion, suggesting continued market participation. UBA Plc dominated both volume and value charts, exchanging 136 million shares worth N5.53 billion, reinforcing investor confidence in the banking sector.
Market breadth remained negative, with 24 gainers and 39 losers, led by Honeywell Flour Mills Plc (-10.00%) and Northern Nigeria Flour Mills Plc (-9.98%) on the laggard side. On the flip side, Union Dicon Salt Plc (+9.93%) and Omatek Ventures Plc (+9.92%) topped the gainers’ list.
Despite the brief downturn, the broader sentiment on the NGX remains positive. Some analysts noted that the market’s resilience in the face of global headlines highlights its increasing maturity and internal drivers — including strong corporate earnings, stabilizing foreign exchange rates, and improved liquidity.
Meanwhile, in the currency market, the naira weakened slightly to N1,438/$1 at the official window from N1,422.2/$1 recorded last Friday. Still, the local currency remains on one of its strongest runs in over 18 months, maintaining momentum after its stellar performance in October.
Financial analysts emphasized that the NGX’s “habit of non-reaction” has become a defining feature of the Nigerian equities landscape. Despite global political noise — from U.S. election rhetoric to regional security developments — the market tends to move more in response to local economic fundamentals such as interest rate decisions, inflation data, and company earnings.
It is believed that the Nigerian market has matured beyond knee-jerk reactions, and it’s becoming increasingly earnings-driven, and that’s a positive sign for investors seeking long-term value rather than short-term speculation.
With year-end positioning already underway, most experts expect the market to resume its upward trend, supported by stable corporate performance and continued investor optimism. Monday’s decline, they say, was nothing more than a healthy breather after a sustained rally — not a reaction to political posturing from abroad.