No doubt the Nigerian stock market is having its worst time. This comes as Nigerian Exchange Limited suffered its biggest loss in history on Tuesday, wiping off a staggering N4.6 trillion from investors’ wealth as panic sell-offs hit heavyweight stocks like Dangote Cement, MTN and Oando.
According to market data from the Nigerian Exchange Limited (NGX), the market’s downward spiral deepened as equities continued to tumble under heavy pressure from investors dumping major stocks.
The total market capitalisation, which opened at N94.526 trillion, crashed by N4.642 trillion to close at N89.884 trillion, while the All-Share Index (ASI) nosedived by 7,454.60 points (5.01%), settling at 141,327.30 points, down from 148,781.90 on Monday.
This marks one of the most dramatic single-day losses ever recorded on the NGX, dragging the year-to-date return down to 37.31%.
For the first time in NGX’s trading history, the market breadth closed extremely negative — 61 losers against just 4 gainers.
Dangote Cement and Oando were the biggest casualties of the sell-off, both plunging by 10% each to close at N594 and N429.30 per share, respectively.
Dangote Cement and MTN led the decliners’ table by 10 per cent each, ending the session at N594 and N429.30 per share, respectively.
Also, BUA Cement and Transcorp Power dipped by 10 per cent each, closing at N162, N39.60 and N36 per share, respectively.
On the flip side, NCR Nigeria managed to top the gainers’ chart, rising by 9.82 percent.
Despite the losses, trading activity surged — with 80% growth in volume and a 159% spike in turnover, as investors scrambled to offload stocks.
A total of 655.9 million shares worth N29.4 billion exchanged hands across 29,558 deals, up from 364.4 million shares valued at N11.4 billion traded on Monday.
FBN HoldCo led in volume with 68.27 million shares traded, while GEREGU Power Plc recorded the highest value at N4.42 billion.
Speaking on the market crash, David Adonri, Vice Chairman of Highcap Securities Ltd., blamed the steep decline on a mix of factors — weak Q3 earnings, investor panic over policy misinterpretations, and fears surrounding a proposed 30% capital gains tax.
According to him, the market’s weakness had already surfaced last week before U.S. President Donald Trump’s comments on Nigeria’s reforms triggered more uncertainty.
“Several banks failed to sustain their dividend levels, while the consumer goods sector posted poor results. These weak fundamentals set the tone for the crash,” Adonri said.
He added that Trump’s remarks, though meant to be positive, were misread by investors, causing panic exits and a massive erosion of confidence.
Adonri also warned that the planned capital gains tax hike has frightened institutional and foreign investors, describing it as a ‘jumbo tax penalty’.
“Many big investors are already pulling out or holding back new investments,” he noted.
