As investors lost more than N1 trillion yesterday due to heightened geopolitical tensions and growing uncertainty about the country’s fiscal policy environment, selling pressure continued across the Nigerian Exchange Limited (NGX) equity sector.
On Tuesday, November 4, 2025, the market capitalisation closed at N96.970 trillion, but at the close of transactions yesterday, it had depreciated by N1.306 trillion to N95.664 trillion. In a similar vein, the All-Share Index, which gauges the performance of companies listed, fell 2,065.74 points, or 1.4%, from 152,629.61 points to 150,573.87 points. As local and foreign investors responded cautiously to domestic and international developments, operators characterised the session as one of the most volatile in recent weeks, with widespread sell-offs across major sectors.
Investors sought refuge in fixed-income instruments and alternative assets during the widespread downturn, which saw significant losses in the banking, consumer goods, and industrial goods sectors. In total, there were 15 winners and 46 losers in the market. In percentage terms, C&I Leasing and Transnational Corporation of Nigeria (TransCorp) were the biggest losers, falling 10% each to close at N5.58 kobo and N45. Skyavn fell behind with a 9.99 percent loss to N80.60 kobo. Betaglass has decreased by 9.99 percent to N393.70. RTBriscoe ended the day at N3.18 kobo, down 9.92%.
Additionally, the market displayed a generally negative trend on the sector’s indices, with declines of 0.19 percent, 0.08 percent, 1.02 percent, and 1.16 percent recorded by the banking, insurance, oil and gas, and commodity indices, respectively, BrandSpur business and economy news desk reports.
The consumer goods and industrial goods sectors, meanwhile, reported slight increases of 0.22 percent apiece. Operators bemoaned the market’s renewed bearish momentum, characterizing it as a result of investors’ mounting concerns about inconsistent policy and the lack of a clear fiscal authorities’ economic direction. They pointed to the contentious post made by former US President Donald Trump on his Truth Social platform, rumours of a failed policy proposal, and an alleged 30% capital gains tax on equity investments as the main causes of the panic selloffs on the local stock exchange.
The operators observed that the reports’ speculative nature, which was exacerbated by investor chatrooms and social media, caused traders and fund managers to become more anxious and sell off a large number of shares in order to prevent further losses. They contend that the development highlights how vulnerable Nigeria’s capital market is, continuing to be extremely susceptible to both external shocks and domestic policy announcements. They cautioned that investor sentiment might stay muted in the near to medium term unless the government offers precise fiscal guidance that would aid in resolving the recent geopolitical tensions and other macroeconomic issues.
Additionally, the operators noted that although the current decline might offer long-term investors entry opportunities, a sustained recovery would primarily rely on improved macroeconomic indicators, policy clarity, and the restoration of investor confidence through coordinated monetary and fiscal interventions. However, they called on regulatory bodies to step up market education and quickly dispel false information that might cause needless investor panic.
The loss of more than N1 trillion in market value in a single trading session, according to the president of the New Dimension Shareholders Association of Nigeria, was a profound and fundamental response from investors. He clarified that the world’s political and economic events always affect financial markets, and that investors’ concerns have been justified by the US president’s recent remarks that alluded to a potential invasion of Nigeria.
Futhering, he pointed out that since investors inherently place a higher priority on the safety and security of their money, such threats cannot be taken lightly.
