NGX Loses N6.4 Trillion as Investor Anxiety and Geopolitical Tensions Weigh on Market

The Nigerian stock market has posted three consecutive weeks of losses, shedding over N6.4 trillion in market capitalisation as heightened uncertainty drives investors away. The decline follows a geopolitical warning issued by former U.S. President Donald Trump on social media, triggering one of the steepest sell-offs in recent years. Market operators attribute the drop to growing apprehension among investors who are adopting a cautious, wait-and-see approach rather than committing fresh capital.

Market data shows that the All-Share Index fell by 10,403.84 points, or 6.8%, moving from 154,126.46 to 143,722.62. Major blue-chip stocks mirrored this trend: GTCO declined from N85.50 to N84.50, Nigerian Breweries dropped from N70 to N68.50, and Zenith Bank fell from N61.55 to N59.75. Consumer goods and industrial sectors also suffered, with PZ Cussons and Dangote Cement reporting notable losses, reflecting the market-wide pullback.

Investor sentiment remains fragile, as market participants closely monitor possible reactions from the United States following Nigeria’s inclusion on a geopolitical risk list. Amaechi Egbo, an independent investor, notes that anxiety has intensified because underlying factors behind the blacklisting appear to be worsening. Many investors fear that any negative policy stance from Washington could disrupt capital flows, affect access to funding, and amplify economic uncertainty.

The bearish trend was evident across trading activity, with only 19 stocks advancing against 60 decliners. Trading volumes and transaction values fell sharply, highlighting widespread risk aversion. Turnover moderated to 2.64 billion units valued at N106 billion, executed across 107,622 trades, signaling that both retail and institutional investors are holding back until the market stabilizes.

Analysts warn that restoring confidence will require decisive policy measures and proactive diplomatic engagement. Until these issues are addressed, market participation is expected to remain muted, with sentiment-driven caution continuing to shape trading patterns. The sustained downturn underscores the sensitivity of the NGX market to geopolitical risks and investor psychology, emphasizing the need for clarity and transparency in economic governance.

source: The Guardian