By Tgnews Reporter
The Nigerian Exchange Limited (NGX) suffered one of its worst single-day losses on Tuesday, erasing N4.6 trillion in market capitalisation as investors rushed to lock in profits amid U.S. President Donald Trump’s threats of military action and the looming implementation of Capital Gains Tax (CGT) by the Federal Government.
The NGX All-Share Index tumbled 7,454.60 basis points, or 5.01 per cent, to close at 141,327.30 points from an opening of 148,781.90 points. Market capitalisation ended the day at N89.885 trillion, down 4.91 per cent from N94.526 trillion.
Blue-chip stocks led the rout, with Dangote Cement Plc, MTN Nigeria Communications Plc, and BUA Cement Plc each hitting the 10 per cent daily decline limit to close at N594.00, N162.00, and N429.30 per share. Dangote Cement alone lost N1.11 trillion in value, MTN Nigeria shed N1 trillion, and BUA Cement dropped N609.6 billion.
The heavy selling pushed Month-to-Date returns to -8.3 per cent while Year-to-Date gains moderated to +37.3 per cent.
Every major sector closed in the red, with the NGX Industrial Goods Index falling 8.6 per cent, Banking 7.3 per cent, Oil & Gas 4.6 per cent, Insurance 4.3 per cent, and Consumer Goods 2.2 per cent.
The trigger came from a Truth Social post in which Trump said he had ordered the Pentagon to “prepare for possible action” and warned of an immediate halt to U.S. aid, citing concerns over religious freedoms in Africa’s most populous nation and OPEC member.
President Bola Tinubu dismissed the statement as a misrepresentation of Nigeria’s efforts to protect freedom of religion and belief for all citizens.
Adding to the pressure, the Federal Government’s planned CGT rollout by 2026 has stoked fears of lower returns and capital outflows.
Tajudeen Olayinka, an investment banker and stockbroker, told THISDAY: “Trump’s threat and the CGT factor have combined to drive aggressive profit-taking in heavyweight stocks. When names like Dangote Cement move, the entire market feels it.”
David Adonri, Vice Chairman of HighCap Securities, remained sanguine: “These are normal short-term adjustments in a vibrant market. The fundamentals are intact, and the +37.3 per cent Year-to-Date return reflects the underlying strength of Nigeria’s capital markets.”
With volatility expected to persist, the NGX reopens Wednesday as investors watch for signals from both Washington and Abuja.
