Investors Lose N1.3 Trillion as Market Anxiety Deepens Amid Policy Uncertainty and Global Tensions
The Nigerian stock market took a sharp tumble on Wednesday, with investors losing a staggering N1.3 trillion in market value as uncertainty deepened over the nation’s fiscal policies and escalating geopolitical tensions. The downturn reflected mounting investor unease, as both local and foreign players pulled back amid speculation and global political jitters.
At the close of trading on the Nigerian Exchange Limited (NGX), market capitalization fell from N96.97 trillion to N95.66 trillion, while the All-Share Index dropped by 2,065.74 points, settling at 150,573.87 points—a 1.4% decline. Analysts described the session as one of the most volatile in recent weeks, marked by heavy sell-offs across major sectors, including banking, industrial goods, and consumer goods.
Market operators attributed the sell pressure to investors’ flight to safety, preferring fixed-income instruments amid fears of new fiscal measures and the lack of a clear economic direction. Speculative reports of a potential 30% capital gains tax on equities and controversial posts by former U.S. President Donald Trump on social media further rattled traders, prompting widespread offloading of shares to minimize losses.
Although the market saw 15 gainers against 46 losers, major companies such as Transcorp, C&I Leasing, Skyavn, Betaglass, and RT Briscoe topped the losers’ chart, each shedding nearly 10% of their value. Sector performance mirrored the overall mood, with indices in banking, insurance, oil and gas, and commodities all posting declines, while industrial and consumer goods sectors managed slight gains of 0.22%.
Market experts warned that unless fiscal authorities provide clear policy direction and stabilize investor confidence, the bearish momentum could persist. They urged regulators to curb misinformation and promote investor education, noting that while the current dip may present entry opportunities for long-term investors, sustained recovery will depend on policy clarity, stronger macroeconomic indicators, and coordinated fiscal and monetary action.
source: The Guardian