Market News
Global uncertainty rattles NGX as investors lose N570b in one week - THE GUARDIAN
By Helen Oji
Uncertainty in global stock markets sent ripples through the Nigerian Exchange Limited (NGX), last week, prompting a wave of selloffs and causing market capitalisation to fall by N570 billion.
Despite strong corporate earnings, investors’ sentiment remained weak, reflecting concerns over global economic instability and profit-taking activities that drove the market downward.
The market capitalisation of listed equities declined by N570 billion or 0.71 per cent to N66.71 trillion, from N67.28 trillion recorded when the market reopened for transactions last week Monday.
Similarly, the all-share index (ASI) dropped 1.2 per cent from 107,455.13 points to 106,538.6 points. Consequently, the year-to-date (YTD) return slipped to 3.51 per cent after four losing sessions in five trading days.
Trading activity also took a hit, as total volume edged lower by 1.62 per cent to 1.82 billion units, while trade value slumped 8.10 per cent to N47.23 billion.
Sectoral performance was largely negative, with five of six sectors closing in the red. The banking sector topped the losers’ chart with a 2.87 per cent decline, followed by insurance (-2.33 per cent) and consumer goods (-1.72 per cent).
The oil and gas index slipped 0.19 per cent, while industrial stocks barely moved, losing just 0.01 per cent. The NGX Commodity Index stood out as the lone gainer, lifted by positive movements in Okomu Oil and Aradel Holdings.
Among individual stocks, Tantalizer delivered the strongest performance, surging by 36.3 per cent, followed by UHM REITs which rose by 28.6 per cent. Livestock Feeds, Learn Africa, and NGX Group also appreciated.
On the flip side, Eterna suffered the worst loss, plunging 18.7 per cent, while Transcorp, FCMB, Royal Exchange and Sovereign Insurance posted declines. The downturn in the NGX coincided with heightened volatility in global stock markets, particularly in the United States, where major indices suffered their worst weekly performance of the year.
The S&P 500 declined by 3.1 per cent, the Dow Jones Industrial Average dropped by 2.4 per cent, and the Nasdaq Composite fell by 3.5 per cent. The losses were attributed to growing investor unease over President Trump’s unpredictable trade policies, including the abrupt introduction and suspension of a 25 per cent tariff on Mexican and Canadian goods under the USMCA agreement. These policy swings have increased uncertainty and dampened investor confidence.
In contrast, European markets displayed resilience, driven by Germany’s announcement of a significant shift in fiscal policy. The German government’s decision to increase defense spending and adopt a more expansionary economic strategy boosted investor optimism within the Eurozone.
