Stock Market
NGX loses N1.8trn in four days on capital gain tax fears, Trump threat
Nigerian equities are in the red again as panic-driven sell-offs wipe out roughly N1.8 trillion in market value within just four trading sessions this month. The NGX All-Share Index (ASI) slid for the fourth consecutive day, dropping from 154,123.62 points at last Friday’s close to 150,026.55 points by Thursday, trimming year-to-date gains from 49.74% to 45.76%.
According to investors, the panic sell-offs are linked to the federal government’s proposed 25% capital gains tax set to take effect in January 2026, which will apply to profits above a N150 million threshold. Local fund managers also point to profit-taking strategies and reallocation of funds into fixed-income markets as part of the reason behind the downturn.
Additionally, geopolitical tensions following U.S. President Donald Trump’s threat of military action against Nigeria are being cited as a potential driver of foreign investor exits. The banking sector, which dominated value traded throughout the week, bore the heaviest losses.
ACCESSCORP, GTCO, ZENITHBANK, and ETI all recorded steep declines as large institutional investors pared down positions. Despite mild resilience from UBA, FCMB, and WAPCO, overall sector sentiment stayed negative. Consumer names such as DANGSUGAR, INTBREW, GUINNESS, and TRANSCORP also came under pressure, reflecting broader investor caution amid concerns about rising Q4 costs and slowing consumer demand. Midweek weakness extended to MTNN and TRANSCORP, deepening the index’s 1.19% single-day plunge on Wednesday. Market turnover stayed robust, with over 2.4 billion shares worth N77 billion changing hands across the week—a sign that investors are rotating rather than exiting completely. Analysts describe the trend as a shift from high-beta equities to cash and defensives, as portfolio managers seek shelter from fiscal uncertainty ahead of the CGT rollout.
Several investors who spoke with Nairametrics said the sustained sell-off stems largely from fear surrounding the new 25% capital gains tax (CGT) on share sales above N150 million, scheduled to take effect in January 2026. Institutional investors, particularly high-net-worth traders and foreign funds, are taking profit now to avoid what they describe as a “potential 25% haircut” on future gains. Local fund managers have warned that the law could prompt capital flight and a temporary pullback in liquidity if not reviewed, erasing the strong Q4 momentum that lifted October returns by over 8%, one of the year’s best months.
Analysts also attribute the downturn to aggressive profit-taking following October’s rally and to capital rotation into the fixed-income market, where yields remain attractive and recent auctions have been heavily oversubscribed. Nigeria’s latest Eurobond issuance was reportedly 200% oversubscribed, underscoring renewed investor appetite for safer naira-denominated assets.
Adding to the unease, U.S. President Donald Trump’s threats of military action against Nigeria—in response to alleged human-rights violations—sparked speculative sell-offs by foreign investors worried about geopolitical risk. The market’s tone remains bearish heading into Friday’s session, with traders watching for cues from the fiscal authorities and possible clarifications on the implementation of the CGT rule. If losses persist, November could mark the worst-performing month of 2025, reversing much of the optimism that followed the October rally. The proposed 25% capital gains tax (on gains above N150 million) is expected to be implemented by January 2026, pending final legislative approval.
NGX market capitalisation inched up on Thursday as equity investors gained more than N92 billion in a wide price upswing that has lasted for three days. Trading activities closed on a positive note, and the bargain hunting boosted key market performance indicators by 0.10%. The stock market index, or the All-Share Index, increased by 152.28 basis points, or 0.10%, to close at 145,476.15 basis points.
Also, NGX market capitalisation climbed by ₦97.06 billion to close at ₦92.73 trillion. Despite the negative breadth, the market rally reflects investors’ continued caution in the stock market. Stockbrokers reported buying interest in selective stocks including OANDO, WAPIC, UACN, TRANSCORP, GTCO, and others across all sectorial indexes.
In contrast, market activities inched lower as the total volume of all trades and their combine value by -14.15% and -8.47% respectively. Today, approximately 1,932.45 million units valued at ₦19,192.53 million were transacted across 23,369 deals.
FIDELITYBK was the volume driver, accounting for 9.04% of all stocks volume executed in the local bourse, followed by GTCO (8.25%), ZENITHBANK (7.90%), ETI (6.38%), and ACCESSCORP with 5.16%.
GTCO topped value chart, accounting for 19.52% of total value of all trades executed on the exchange – the highest traded on the exchange.
UACN led gainers chart, up by +10.00%, trailed by MORISON (+9.94%), ETI (+8.53%), WAPIC (+8.47%), MANSARD (+7.75%), FTNCOCOA (+7.10%), and seventeen others.
A total of twenty-eight (28) stocks depreciated, according to market report released by Atlass Portfolio Limited. With a price depreciation of -10.00%, ELLAHLAKES and EUNISELL both topped the worst performers’ chart, followed by TRANSCOHOT (-9.95%), OMATEK (-9.23%), GUINEAINS (-8.46%), and CAP (-6.16%).
Hence, the market breadth closed on a negative note, as there were 23 gainers and 28 losers. The sectoral performance was positive, as all five major market sectors appreciated. The insurance sector led with an increase of +1.56%, followed by the banking sector (+0.91%), the industrial goods sector (+0.48%), the consumer goods sector (+0.28%), and the oil & gas sector (+0.08%).
Nigerian Exchange (NGX) continued its upward trajectory on Wednesday, with the All-Share Index climbing by 0.27% to reach 145,323.87 points. NGX market capitalisation rose to ₦92.38 trillion as equities investors gained N252 billion. The market demonstrated positive momentum, reflected in a breadth ratio of 1.9x, with 30 stocks posting gains compared to 16 that declined, stockbrokers said. The bullish momentum was fuelled by interest in some oversold stocks across key sectors. Among the top performers were GUINNESS, NCR, NGXGROUP, MULTIVERSE, and SKYAVN, while VERITASKAP, LASACO, PRESTIGE, ROYALEX, and ETI experienced the most significant declines.
Stockbrokers also noted positive price movement in BUACEMENT, UBA, GUINNESS, WEMABANK, STERLINGNG, among others. The All-Share Index added 395.51 basis points to close at 145,323.87 basis points. Trading metrics presented contrasting patterns as the volume of shares traded jumped dramatically by 271.27% to 2.25 billion units, and the number of transactions increased 45.45% to 21,513 deals. Conversely, the total value of transactions dropped 47.17% to ₦20.97 billion. ACCESSCORP emerged as the most traded stock, accounting for 13.60%, followed by ZENITHBANK (13.17%), GTCO (8.70%), STERLINGNG (6.27%), and FIDELITYBK with 5.25%.
ZENITHBANK topped the value chart, accounting for 20.54% of the total value of all trades executed in the local bourse. GUINNESS led the performers chart, gaining +10.00%, trailed by NCR (+9.98%), NGXGROUP (+9.96%), MULTIVERSE (+9.95%), SKYAVN (+9.74%), OMATEK (+5.69%), and twenty-four others. A total of fifteen (15) stocks depreciated, according to data obtained from the local bourse. With a price depreciation of -4.47%, VERITASKAP topped the worst performers’ chart, followed by LASACO (-3.77%), PRESTIGE (-3.03%), ROYALEX (-2.56%), ETI (-1.88%), and CORNERST (-1.75%). Hence, the market breadth closed on a positive note, as there were 30 gainers and 15 losers, stockbrokers reported.
Sector performance showed varied results: the Banking sector led with a 0.65% gain, followed by Industrial Goods which rose 0.47%; Consumer Goods up 0.38%; and Insurance advancing 0.27%. In contrast, the Oil & Gas sector fell 0.47% and Commodities declined 0.24% Ikeja Hotels hits highest valuation in 52 weeks gaining 45 per cent
The NGX All-Share Index fell by 0.14 per cent to 143,520.53, while market capitalisation closed at N91.286 trillion for the week.
This, compared with 143,722.62 points and N91.415 trillion recorded in the previous week, reflects weaker sentiment across the market.
Investors “lost about N129 billion this week as profit-taking continued across major counters”. Most indices closed lower, except NGX CG, NGX Premium, NGX Banking, NGX Pension, NGX AFR Div. Yield, NGX AFR Bank Value, NGX MERI Growth, NGX MERI Value, NGX Lotus II, NGX Growth and NGX Sovereign Bond.
These indices appreciated between 0.01 per cent and 0.94 per cent, showing selective interest in defensive stocks. Turnover rose to 4.140 billion shares worth N115.889 billion in 102,351 deals, higher than 2.668 billion shares valued at N106.264 billion last week.
The financial services industry led activity with 3.358 billion shares worth N81.175 billion in 43,392 deals.
This represented 81.10 per cent of total volume and 70.05 per cent of total value traded during the week.
The services industry followed with 148.272 million shares worth N1.319 billion exchanged in 7,181 deals. The consumer goods sector placed third with 143.638 million shares worth N7.988 billion in 12,099 trades.
Cornerstone Insurance, GTCO and Access Holdings accounted for 2.005 billion shares worth N47.535 billion in 10,185 deals.
These three stocks contributed 48.43 per cent of total turnover volume and 41.02 per cent of total value.
Thirty-eight equities gained during the week, up from 20 recorded previously, while 36 declined, compared with 60 in the prior week.
Seventy-three equities remained unchanged, higher than 67 posted in the previous trading week. Ikeja Hotel, NCR Nigeria, UACN, CWG and Veritas Kapital emerged top gainers, advancing by N9.40, N13.55, N8.90, N1.90 and 18k, respectively.
Meyer, Sunu Assurances, UPDC, Tantalizer and Abbey Mortgage Bank topped the losers’ chart, shedding N3.05, 68k, 68k, 26k and 65k, respectively.
The NGX disclosed the listing of 243,424 additional units of the Chapel Hill Denham Nigeria Infrastructure Debt Fund.
It said, “The additional units arose from the Fund’s 2025 Q3 scrip dividend distribution to qualifying holders.”
The NGX added that the Fund’s total units have increased to 1,056,257,953 following the fresh listing.
The exchange also confirmed the extension of VFD Group’s Rights Issue following SEC approval. It said trading in the company’s rights “will now close on Friday, December 26.”
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