The Nigerian Exchange (NGX) began the week on a bearish note as the All-Share Index (ASI) declined by 0.25% to close at 153,739.11 points, wiping out about N244.9 billion in market value.
The downturn was driven by selloffs in medium and large-cap stocks across the banking, oil & gas, and consumer goods sectors.
Market capitalization fell from N97.8 trillion to N97.5 trillion, reflecting renewed investor caution after a strong rally in October.
Although some traders initially linked the pullback to heightened geopolitical noise, including a viral post by U.S President Donald Trump threatening to “send troops” to Nigeria over alleged religious killings, market analysts told Nairametrics that the decline was largely due to routine profit-taking after weeks of strong gains.
A media report from one of the popular foreign business media websites had suggested Naira assets have “tumbled” over the threat from Trump. However, Nairametrics research suggests this was not the case.
Despite losses records, most were modest and did not show any sign of a sell-off as may have been construed.
October had ended as one of the best-performing months this year, with stocks rising 8%, second only to July’s performance. The market had snapped a losing streak last Friday but failed to sustain the momentum as earnings results triggered fresh sell pressure.
Meanwhile, the exchange rate between the naira and the U.S. dollar weakened slightly to N1,438/$1 at the official market on Monday, compared to N1,422.2/$1 last Friday.
Despite the mild pullback, the naira remains on a remarkable run, having recorded its best monthly performance in over 18 months in October.
Monday’s close still ranks as the second-best day since May 2024, underscoring a period of renewed FX stability.
Market breadth remained negative with 24 gainers and 39 losers.
- Union Dicon Salt Plc (+9.93%) topped the gainers’ chart, followed by Omatek Ventures Plc (+9.92%). On the flip side, Honeywell Flour Mills Plc (-10.00%) and Northern Nigeria Flour Mills Plc (-9.98%) led the laggards.
- Trading activity was upbeat, as total volume rose by 18% to 627 million units, valued at N25.1 billion. UBA Plc dominated both volume and value charts, exchanging 136 million shares worth N5.53 billion.
Despite the pullback, analysts say the market remains in a broadly positive trend, supported by strong corporate earnings and improving investor sentiment.
