Investor confidence in Nigerian equities took a severe hit last week as uncertainty in global financial markets sparked widespread selloffs on the Nigerian Exchange Limited (NGX).
Despite the positive release of strong corporate earnings, investor sentiment remained overwhelmingly cautious because of global uncertainties following Donald Trump’s trade decisions.
These concerns led investors to engage in extensive profit-taking activities, thereby contributing to the week’s market downturn.
The market capitalisation of listed equities plummeted by N570 billion or 0.71 percent, declining from N67.28 trillion recorded at the beginning of the week to close at N66.71 trillion on Friday.
Correspondingly, the All-Share Index (ASI) decreased by 1.2 per cent from 107,455.13 points to 106,538.6 points, reducing the year-to-date (YTD) return to 3.51 per cent.
Trading volumes also reflected subdued activity, with the total number of shares traded dropping slightly by 1.62 percent to 1.82 billion units.
Transaction value experienced an even steeper decline, contracting by 8.10 percent to settle at N47.23 billion.
A closer look at sectoral performance reveals a largely negative trend, with five of the six major sectors closing the week in the red.
The banking sector led the downturn with a sharp 2.87 percent decline, impacted by heavy selloffs in major bank stocks.
This was followed by the insurance sector, which shed 2.33 percent, and consumer goods, down by 1.72 percent. The oil and gas sector and industrial stocks also edged lower by 0.19 percent and 0.01 percent, respectively.
However, the NGX Commodity Index bucked the broader negative trend, closing positively, driven mainly by gains in Okomu Oil and Aradel Holdings.
Among individual equities, fast-food company Tantalizer posted the most impressive gains, surging by 36.3 percent, with UHM REITs also performing strongly, up by 28.6 percent.
Livestock Feeds, Learn Africa, and NGX Group recorded notable appreciation in share prices.
Conversely, Eterna Oil suffered the heaviest losses, plunging 18.7 percent during the week, alongside significant declines recorded by Transcorp, FCMB, Royal Exchange, and Sovereign Insurance.
The Nigerian market downturn coincided with increased volatility in global equities, particularly in the United States, where major indices recorded their worst weekly performance of the year.
The S&P 500 lost 3.1 percent, the Dow Jones Industrial Average fell 2.4 percent, and the Nasdaq Composite declined by 3.5 percent.
Investor sentiment globally has been destabilised due to unpredictable U.S. trade policies, notably President Trump’s abrupt tariff imposition and subsequent suspension of a 25 per cent tariff on Mexican and Canadian goods under the USMCA agreement.
Meanwhile, European markets provided a contrast, demonstrating resilience following Germany’s announcement of significant fiscal policy changes, including increased defense spending and an expansionary economic stance aimed at stimulating regional growth.
For Nigerian investors, the immediate outlook remains cautious.
