By Tgnews Reporter
The Nigerian Exchange Limited (NGX) closed a bruising first trading week of November with investors reeling from a staggering N2.8 trillion loss, fueled by widespread sell-offs triggered by U.S. President Donald Trump’s inflammatory threats against Nigeria.
The bearish sentiment overshadowed positive corporate developments, including MTN Nigeria’s return to profitability and a fresh infrastructure bond listing.
The All-Share Index (ASI) and market capitalization tumbled across all five trading sessions from November 3 to 7, erasing gains from October’s robust rally.
The week began with a N244.9 billion wipeout on Monday, escalating to N611.96 billion lost on Tuesday and a peak single-day drop of N1.31 trillion on Wednesday.
Thursday and Friday saw further erosions of N347.75 billion and N318.78 billion, respectively, capping the downturn at a year-to-date return of +49.37 percent—down from recent highs.
Market capitalization shrank from N97.829 trillion to N97.582 trillion, with the ASI dipping 0.25% to 153,739.11 points on Monday alone. Sell-offs ravaged medium and large-cap stocks in banking, oil & gas, and consumer goods sectors, reflecting heightened investor caution amid macroeconomic jitters.
At the week’s end, trading volume fell to 3.575 billion shares worth N107.011 billion in 146,429 deals, compared to 7.479 billion shares valued at N145.429 billion the prior week.
The Financial Services sector dominated with 2.946 billion shares (82.39% of volume) worth N65.904 billion, followed by Services (147.325 million shares) and Consumer Goods (147.307 million shares).
Top performers included NCR (Nigeria) Plc (+20.94%), Eunisell Interlinked Plc (+20.17%), and Union Dicon Salt Plc (+9.93%). However, decliners outnumbered gainers 75 to 20, with Sovereign Trust Insurance Plc (-28.21%), C & I Leasing Plc (-20.16%), and Skyway Aviation Handling Company Plc (-18.99%) leading the losses. Fidelity Bank, FCMB Group, and Aso Savings & Loans accounted for 36.03% of volume.
The rout followed Trump’s weekend rhetoric, where he designated Nigeria a “Country of Particular Concern” over alleged Christian genocide and vowed to sever U.S. aid unless swift action is taken.
The comments, delivered penultimate Friday and reiterated Saturday, evoked fears of military escalation, sparking a global reassessment of Nigerian assets.
Economist Dr. Muda Yusuf warned that the threats could “undermine Nigeria’s image as a stable investment destination,” intensifying volatility, elevating risk premiums, and inflating sovereign bond yields.
“This risks unsettling financial markets and eroding confidence among both domestic and international investors,” Yusuf stated.
Market analyst Adebayo Adeleke, former General Secretary of the Independent Shareholders Association of Nigeria (ISAN), attributed much of the plunge to the “Trump threat perspective,” noting an imbalance of sellers over buyers during earnings season—a period typically ripe for gains.
“This is abnormal; companies are reporting third-quarter results with a October 30 deadline,” he observed.
Yet, Adeleke downplayed long-term damage, emphasizing the market’s shift toward domestic dominance: “Foreign investors held 72% in 2008; now it’s solidly in Nigerian hands. We’re not likely to see serious index damage.”
Analysts at AIICO Capital foresee “sustained negative sentiment” short-term due to -2.6x market breadth and persistent sell-pressure, though Adeleke predicts a reversal by mid-week as bargain hunters reprice assets.
MTN Nigeria Shares Tumble 8.3%
Compounding the gloom, MTN Nigeria Plc (MTNN) shed 8.3% of its value, closing at N477 per share from a 52-week high of N520.1, trimming market cap to N10.014 trillion. The telecom giant faced pre-dividend trimming despite stellar 9M-2025 results: a 245% profit after tax surge to N687 billion from a N474 billion loss in 2024.
The board declared a N5 per share interim dividend—MTN’s first in two years, ending a payout hiatus tied to negative equity. Qualification closes November 20, with electronic payments on November 28. Analysts hail it as a sign of sustained payout ratios, but Trump’s shadow looms: “The threat, driven by negative insecurity narratives, adds unnecessary concern,” one expert noted.
Bright Spot: N4.64 Billion Bond Listing Signals Infrastructure Push
In a counterpoint to equity woes, the NGX welcomed the N4.64 billion Series 1 Senior Guaranteed Fixed Rate Infrastructure Bond from Elektron Finance SPV Plc on November 3—the inaugural tranche of a N200 billion program. This 15-year instrument, maturing July 2040, offers a 22% fixed coupon, semi-annual payments starting July 2025, and amortized redemptions from month 36.
Guaranteed by InfraCredit and co-obligated by Victoria Island Power Limited, the par-value (N1,000/unit) bond drew robust institutional uptake, positioning it as a low-risk, high-yield haven.
Vetiva Advisory Services led issuance, with Anchoria, ARM Capital, CardinalStone, FBNQuest, and Iron Global Markets as joints. Analysts view it as vital for bridging Nigeria’s infrastructure gap, appealing to pension funds and insurers amid volatility.
As trading resumes this week, eyes are on whether Trump’s barbs will prolong the bleed or if domestic resilience sparks a rebound. With earnings momentum and attractive yields in play, the NGX’s fate hangs in the balance between geopolitics and fundamentals.
