Nigerian stock market downturn deepens as investors lose ₦4.6trn amid weak earnings, policy fears and tax concerns, says David Adonri

Nigerian stock market downturn continued on Tuesday as the market closed on a bearish note, losing ₦4.6 trillion in a single session due to widespread sell-offs in heavyweight stocks.

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According to data from the Nigerian Exchange Ltd. (NGX), market capitalisation fell from ₦94.526 trillion to ₦89.884 trillion, representing a loss of ₦4.642 trillion.

The All-Share Index (ASI) dropped by 7,454.60 points or 5.01 per cent, closing at 141,327.30 points compared to 148,781.90 points recorded the previous day.

The sharp decline pushed the year-to-date (YTD) return down to 37.31 per cent, with market breadth closing heavily negative — 61 losers against only four gainers.

Top decliners included Dangote Cement and MTN, both sliding by 10 per cent to close at ₦594 and ₦429.30 per share respectively. BUA Cement, Transcorp Power, and Oando also plunged by 10 per cent each, finishing at ₦162, ₦39.60, and ₦36 per share.

In contrast, NCR Nigeria led the gainers’ table with a 9.82 per cent increase to ₦21.25 per share, followed by Berger Paints, which rose by 2.56 per cent to ₦36, while FCMB Group and AXA Mansard posted modest gains.

Trading activity, however, remained robust, showing an 80 per cent rise in volume and a 159 per cent jump in turnover despite a 9 per cent decline in deals.

A total of 655.9 million shares worth ₦29.4 billion were traded in 29,558 transactions, compared to 364.4 million shares valued at ₦11.4 billion in 32,564 deals on Monday.

First HoldCo recorded the highest volume with 68.27 million shares, while GEREGU led in value at ₦4.42 billion.

Speaking on the market situation, Mr David Adonri, Vice Chairman of Highcap Securities Ltd, attributed the Nigerian stock market downturn to weak third-quarter earnings, investor misinterpretation of foreign policy remarks, and fears over a proposed increase in capital gains tax.

“The market had already started declining due to disappointing third-quarter results from some listed companies,” Adonri explained.

“Several banks could not sustain their previous dividend levels, while the consumer goods sector posted unimpressive figures. These disclosures weakened fundamentals and eroded investor confidence.”

He added that the situation worsened following recent comments by U.S. President Donald Trump on Nigeria’s economic reforms, which, though intended to be supportive, were misinterpreted by investors and triggered panic.

Adonri also highlighted the government’s proposed 30 per cent capital gains tax, expected to take effect in January, as a major deterrent to both institutional and foreign investors.

“Many high-net-worth and institutional investors, who are the main targets of this policy, see it as a jumbo tax penalty and have started exiting or holding back investments,” he noted.

Despite the negative sentiment, Adonri described the current phase as a buyers’ market, stressing that the sharp drop in stock prices presents a valuable opportunity for investors with liquidity.

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“The sharp decline has created great opportunities. Any investor who has cash to deploy now will enjoy the market,” he said confidently.