The Nigerian stock market suffered a sharp downturn on Tuesday, wiping out ₦4.6 trillion in value as massive sell-offs hit heavyweight stocks across key sectors.
According to data from the Nigerian Exchange Limited market capitalization fell from ₦94.526 trillion on Monday to ₦89.884 trillion, reflecting a ₦4.642 trillion loss. The All-Share Index also dipped by 7,454.60 points or 5.01 per cent, closing at 141,327.30 points compared to 148,781.90 recorded in the previous session.
This decline dragged the year-to-date return down to 37.31 per cent, with market sentiment heavily negative as 61 stocks declined while only four gained.
Leading the decliners’ chart were Dangote Cement and MTN Nigeria, both shedding 10 per cent each to close at ₦594 and ₦429.30 per share respectively. BUA Cement, Transcorp Power, and Oando also recorded 10 per cent losses apiece, ending at ₦162, ₦39.60, and ₦36 per share.
On the flip side, NCR Nigeria led the gainers’ table, rising by 9.82 per cent to ₦21.25 per share. Berger Paints followed with a 2.56 per cent gain to ₦36, while FCMB Group added 0.96 per cent to close at ₦10.50. AXA Mansard also edged up by 0.25 per cent to ₦12.10 per share.
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Trading activity showed a surge in both volume and value. Investors exchanged 655.9 million shares worth ₦29.4 billion across 29,558 deals representing an 80 per cent increase in volume and a 159 per cent jump in turnover compared to Monday’s 364.4 million shares valued at ₦11.4 billion in 32,564 deals.
FBN Holdings recorded the highest volume traded with 68.27 million shares, while Geregu Power led in value with ₦4.42 billion worth of shares changing hands.
Vice Chairman of Highcap Securities Limited, Mr. David Adonri, attributed the sharp fall to weak third-quarter earnings, investor misinterpretation of foreign policy statements, and fears surrounding the proposed 30 per cent capital gains tax set to take effect in January 2026.
He explained that many listed firms, especially in the banking and consumer goods sectors, posted disappointing results, which dampened investor sentiment even before U.S. President Donald Trump’s recent remarks about Nigeria’s economy triggered further uncertainty.
“The market was already weakening due to unimpressive Q3 results. Some banks couldn’t sustain their dividend levels, and this eroded confidence,” Adonri said.
He added that Trump’s comments though meant to be supportive were misinterpreted by investors, causing panic and accelerating capital flight.
Adonri also warned that the proposed capital gains tax had become a major red flag for institutional investors.
“High-net-worth and foreign investors see it as a punitive policy and have started exiting or holding back their investments,” he stated.
Despite the bearish sentiment, Adonri described the downturn as a “buyers’ market,” offering opportunities for investors with liquidity.
“The sharp drop has created attractive entry points. Those with cash to deploy now will benefit when the market stabilizes,” he added.
