Nigeria’s Equities Market Suffers Massive Loss

Nigeria’s Equities Market Suffers Massive Loss of ₦658 Billion

LAGOS — The Nigerian equities market kicked off the week on April 7, 2025, with a significant downturn, as investors lost a staggering ₦658 billion due to widespread selloffs across major sectors. This substantial decline was driven by a sharp drop in the share prices of key financial stocks, including OANDO, RTBRISCOE, and CORNERST, each falling by 10%.

Market Performance

1. All-Share Index Decline:
   • The Nigerian Exchange (NGX) All-Share Index (ASI) plummeted by 1,295.02 points, or 1.23%, to close at 104,216.87 points from 105,511.89 points recorded on the previous trading day.
2. Market Capitalization:
   • The market capitalization decreased by 1.00% to ₦65.488 trillion from ₦66.147 trillion on April 4, 2025.

Sectoral Performance

1. Insurance Sector:
   • The insurance sector experienced the largest decline, dropping by 7.56%, followed by the banking sector, which fell by 5.48%.
2. Consumer Goods and Energy Sectors:
   • The consumer goods sector declined by 0.79%, while the oil and gas sector slumped by 0.65%.

Top Gainers and Losers

1. Gainers:
   • VFD Group led the gainers with a 10% increase in share price to ₦62.70 from ₦57. TotalEnergies and Guinea Insurance also recorded significant gains of 9.61% and 9.52%, respectively.
2. Losers:
   • OANDO, RTBRISCOE, and CORNERST were among the top losers, each experiencing a 10% decline in share prices.

Market Sentiment

1. Negative Market Breadth:
   • The market breadth was negative, with only 9 stocks advancing and 50 stocks declining, while 61 stocks remained unchanged in 15,690 deals.
2. Increased Trading Volume:
   • Despite the downturn, trading volume increased by 27.52% compared to the previous week, with 444.11 million units valued at ₦11,148.34 million being transacted.

Global Impact

1. Trump’s Tariffs:
   • The decline in the Nigerian equities market was also influenced by global economic uncertainties, particularly the announcement of tariffs by U.S. President Donald Trump. This move has heightened fears about trade disruptions and their impact on emerging markets like Nigeria46.
2. Global Stocks Crash:
   • The S&P 500 index in the U.S. fell by 2.3%, entering a bear market, which further exacerbated the sell-off in Nigerian stocks.

Conclusion

The significant loss in the Nigerian equities market highlights ongoing challenges faced by investors due to economic uncertainties and sector-wide declines. As the market continues to navigate these challenges, stakeholders are closely watching for signs of recovery and stability.