Nigeria’s stock market delivered a rare show of strength on Tuesday as the Nigerian Exchange Limited (NGX) gained N710 billion in market capitalisation, defying a wave of global sell-offs triggered by escalating Iran war fears. While investors across the United States, Europe and Asia dumped risk assets amid rising geopolitical tensions and surging crude oil prices, the local bourse closed in positive territory, reflecting renewed confidence in domestic equities.
Global markets were rattled by the crisis. In the United States, the Dow Jones Industrial Average plunged more than 1,200 points, a drop of about 2.5 per cent. The S&P 500 fell roughly 2.4 per cent, while the tech-heavy Nasdaq Composite declined close to 2.7 per cent. European markets followed suit, with the STOXX Europe 600 closing significantly lower. Germany’s DAX and the UK’s FTSE 100 ended firmly in the red, while Asia saw Japan’s Nikkei 225 drop over three per cent and South Korea’s KOSPI record sharper losses.
In contrast, the NGX All-Share Index rose by 1,107.73 points to close at 196,621.96, pushing total market capitalisation from N125.488 trillion to N126.198 trillion — a 0.56 per cent increase. Trading activity also strengthened, with volume rising by 3.91 per cent to 820.745 million shares, while the value of transactions surged by 23.27 per cent to N43.239 billion across 84,189 deals. The positive momentum suggested that local investors were looking beyond global panic to focus on domestic fundamentals.
On the gainers’ chart, SUNU Insurance led with a 10 per cent appreciation, followed closely by NGX Group and Oando Plc, both posting near double-digit gains. Sovereign Trust Insurance also recorded strong buying interest. However, the session was not without losers, as Fidson Healthcare topped the decline chart with a 10 per cent drop, while McNichols, Mecure and Deap Capital also closed lower. Market activity was dominated by FTG Insurance, Sterling Bank, Japaul Gold, Zenith Bank and Jaiz Bank, reflecting broad participation across sectors.
Market analysts cautioned that the NGX’s resilience may face tests if global instability persists. Managing Director of Crane Securities Limited, Mike Ezeh, noted that while Nigeria is not insulated from global shocks — recalling the 2009 market turbulence — the country’s emerging market status and strong-performing companies are currently supporting investor sentiment. He added that the delayed transmission of global shocks to Nigeria could provide room for stability, while the present climate appears to be attracting high-net-worth and foreign investors, signaling growing international confidence in Nigerian equities.
source: The guardian