Global Market Turmoil Hits NGX: Investors Lose N570 Billion in One Week
Stock Sell-Offs Deepen Amid Economic Uncertainty
The Nigerian Exchange Limited (NGX) faced a turbulent week as global economic uncertainties triggered a wave of selloffs, leading to a sharp decline in market capitalization by N570 billion. Despite strong corporate earnings, investor sentiment remained weak, reflecting concerns over profit-taking activities and external market pressures.
At the close of trading last week, market capitalization fell to N66.71 trillion, down from N67.28 trillion recorded at the start of the week, marking a 0.71% decline. Similarly, the All-Share Index (ASI) dropped by 1.2%, slipping from 107,455.13 points to 106,538.6 points, bringing the year-to-date (YTD) return to 3.51%.
Trading Activity and Sector Performance
The market downturn was accompanied by lower trading activity. Total trading volume declined by 1.62% to 1.82 billion units, while trade value dropped by 8.10% to N47.23 billion.
Sectoral performance painted a grim picture, with five of six major sectors closing in the red:
• Banking sector: -2.87% (biggest sectoral loser)
• Insurance sector: -2.33%
• Consumer goods sector: -1.72%
• Oil and gas sector: -0.19%
• Industrial sector: -0.01%
• NGX Commodity Index: The only gainer, driven by Okomu Oil and Aradel Holdings
Biggest Winners and Losers
While the broader market struggled, a few stocks defied the selloff:
Top Gainers:
• Tantalizer: +36.3% (best-performing stock of the week)
• UHM REITs: +28.6%
• Livestock Feeds, Learn Africa, and NGX Group also recorded gains.
Biggest Decliners:
• Eterna: -18.7% (worst-performing stock)
• Transcorp, FCMB, Royal Exchange, and Sovereign Insurance also saw notable losses.
Global Market Impact on NGX
The NGX’s struggles mirrored heightened volatility in global markets, particularly in the United States, where major indices suffered their worst weekly performance of 2025.
• S&P 500: -3.1%
• Dow Jones Industrial Average: -2.4%
• Nasdaq Composite: -3.5%
The downturn was fueled by uncertainty surrounding President Trump’s trade policies, including the abrupt introduction and suspension of a 25% tariff on Mexican and Canadian goods under the USMCA agreement. These unpredictable policy shifts rattled investors, leading to a sharp market pullback.
Europe’s Resilience
In contrast to the U.S. and Nigeria, European markets displayed resilience, buoyed by Germany’s decision to increase defense spending and adopt a more expansionary fiscal policy. This policy shift injected optimism into the Eurozone, preventing a widespread selloff across European stock markets.
Outlook for the NGX
The coming weeks will be crucial in determining whether the NGX can recover from this setback. Key factors to watch include:
✔ Global market stability – If U.S. policy uncertainty persists, investor sentiment could remain weak.
✔ Foreign investor confidence – Any signs of capital flight could put additional pressure on the NGX.
✔ Corporate earnings reports – Strong Q1 2025 results could help stabilize the market.
What’s your take on the NGX’s decline? Do you see a rebound ahead, or will market pressures persist? Let’s discuss in the comments!
Stock Sell-Offs Deepen Amid Economic Uncertainty
The Nigerian Exchange Limited (NGX) faced a turbulent week as global economic uncertainties triggered a wave of selloffs, leading to a sharp decline in market capitalization by N570 billion. Despite strong corporate earnings, investor sentiment remained weak, reflecting concerns over profit-taking activities and external market pressures.
At the close of trading last week, market capitalization fell to N66.71 trillion, down from N67.28 trillion recorded at the start of the week, marking a 0.71% decline. Similarly, the All-Share Index (ASI) dropped by 1.2%, slipping from 107,455.13 points to 106,538.6 points, bringing the year-to-date (YTD) return to 3.51%.
Trading Activity and Sector Performance
The market downturn was accompanied by lower trading activity. Total trading volume declined by 1.62% to 1.82 billion units, while trade value dropped by 8.10% to N47.23 billion.
Sectoral performance painted a grim picture, with five of six major sectors closing in the red:
• Banking sector: -2.87% (biggest sectoral loser)
• Insurance sector: -2.33%
• Consumer goods sector: -1.72%
• Oil and gas sector: -0.19%
• Industrial sector: -0.01%
• NGX Commodity Index: The only gainer, driven by Okomu Oil and Aradel Holdings
Biggest Winners and Losers
While the broader market struggled, a few stocks defied the selloff:
Top Gainers:
• Tantalizer: +36.3% (best-performing stock of the week)
• UHM REITs: +28.6%
• Livestock Feeds, Learn Africa, and NGX Group also recorded gains.
Biggest Decliners:
• Eterna: -18.7% (worst-performing stock)
• Transcorp, FCMB, Royal Exchange, and Sovereign Insurance also saw notable losses.
Global Market Impact on NGX
The NGX’s struggles mirrored heightened volatility in global markets, particularly in the United States, where major indices suffered their worst weekly performance of 2025.
• S&P 500: -3.1%
• Dow Jones Industrial Average: -2.4%
• Nasdaq Composite: -3.5%
The downturn was fueled by uncertainty surrounding President Trump’s trade policies, including the abrupt introduction and suspension of a 25% tariff on Mexican and Canadian goods under the USMCA agreement. These unpredictable policy shifts rattled investors, leading to a sharp market pullback.
Europe’s Resilience
In contrast to the U.S. and Nigeria, European markets displayed resilience, buoyed by Germany’s decision to increase defense spending and adopt a more expansionary fiscal policy. This policy shift injected optimism into the Eurozone, preventing a widespread selloff across European stock markets.
Outlook for the NGX
The coming weeks will be crucial in determining whether the NGX can recover from this setback. Key factors to watch include:
✔ Global market stability – If U.S. policy uncertainty persists, investor sentiment could remain weak.
✔ Foreign investor confidence – Any signs of capital flight could put additional pressure on the NGX.
✔ Corporate earnings reports – Strong Q1 2025 results could help stabilize the market.
What’s your take on the NGX’s decline? Do you see a rebound ahead, or will market pressures persist? Let’s discuss in the comments!