The Nigerian stock market extended its downward trend on Tuesday, as diplomatic tensions between Nigeria and the United States continued to weigh on investor sentiment. The Nigerian Exchange Market suffered a significant loss of N612 billion, following a decline of N245.88 billion on Monday. This brings the total loss to N857.88 billion over the two-day period.
The market’s decline was driven by sustained sell-offs in several key stocks, including National Salt Company, Skyway Aviation Handling Company, Oando, UPDC, and Learn Africa, among 36 other declining stocks. The market capitalisation opened at N97.582 trillion but fell to N96.970 trillion, while the All-Share Index dropped by 1,109.50 points, or 0.72 percent, to close at 152,629.61 points.
Market breadth was negative, with 41 losers and 17 gainers recorded across the trading floor. National Salt Company and Skyway Aviation Handling Company were the top losers, followed by Oando. In contrast, Eunisell Interlinked led the gainers, rising by 10 percent to close at N64.90, while Sunu Assurances followed with a 9.98 percent rise to N4.96.
The market activity showed an improvement in volume, with investors exchanging 683.9 million shares worth N20.4 billion in 33,288 transactions. Aso Savings and Loans led in volume, with 111.9 million shares valued at N115.2 million. However, the value and number of deals declined compared to the previous trading day.
The current market downturn comes amid heightened diplomatic tensions between Nigeria and the United States, sparked by US President Trump’s threat of military action if the Nigerian government fails to address alleged killings of Christians. The diplomatic row has added to the uncertainty in the market, contributing to the bearish trend.
As the market continues to navigate these challenges, investors will be closely watching for any developments that could impact the market’s performance. The Nigerian stock market’s ability to recover from its current slump will depend on various factors, including the resolution of the diplomatic tensions and the overall state of the economy. For now, investors remain cautious, and the market is likely to remain volatile in the short term.