Investor sentiment on the Nigerian Exchange Limited (NGX) turned sharply negative over the past 10 trading days, leading to a massive N545.13 billion loss in market value across four Tier-1 banks GTCO Plc, Access Holdings Plc, Zenith Bank Plc, and United Bank for Africa (UBA) Plc.
The sell-off, which analysts have attributed to heightened investor anxiety following comments by US President Donald Trump on Nigeria’s insecurity, has triggered widespread apathy and profit-taking in the local bourse.
GTCO Plc led the decline with a staggering N182.13 billion loss between November 1 and November 10, as its share price fell from N89.50 to N84.50 per share. Access Holdings Plc followed with a N141.29 billion drop, slipping from N24.45 to N21.80 per share during the same period.
Similarly, Zenith Bank Plc shed N139.64 billion, closing at N59.60 per share from N63.00 at the beginning of the month, while UBA Plc recorded a N82.08 billion loss over the 10-day trading window. Reacting to the sustained decline in the market, Mr. Aruna Kebira, Managing Director/CEO of Globalview Capital Limited, said the persistent sell-off was largely driven by what he described as the “Donald Trump effect” and a wave of profit-taking by investors.
According to him, Trump’s recent remarks should serve as a wake-up call to the Nigerian government to urgently tackle the nation’s security challenges. “The insecurity issue has become persistent and requires decisive action. The market may continue to slide until it reaches a level where most investors will no longer be willing to sell,” Kebira stated.
He added that investors are closely monitoring the outcome of the government’s engagement with the U.S. administration, noting that once clear assurances emerge that Nigeria is taking concrete steps to address insecurity, market confidence is expected to return, potentially triggering a strong rebound in share prices.
Another senior stockbroker, who spoke on condition of anonymity, also linked the massive selloff to political risk and profittaking. “The fear in the market is largely driven by political uncertainty.
Whenever investors sense instability or the risk of sanctions, they prefer to move their capital to safer markets,” he said. He, however, noted that the Nigerian stock market had been one of Africa’s best performers before the recent downturn, gaining nearly 50 per cent year-to-date as of October.
The broker urged the Federal Government to manage the situation diplomatically to avoid further erosion of investor confidence. “Nigeria stands to lose more if this issue is not properly handled. A diplomatic resolution is crucial to restoring both foreign perception and local investor sentiment,” he emphasized.
He further explained that while profit-taking had amplified the sell pressure, the correction is likely temporary given the strong fundamentals of listed companies. “Many investors are simply locking in gains after impressive rallies in recent weeks. Valuations remain attractive, and once sentiment improves, we expect renewed buying interest that will stabilize and lift prices again,” he concluded.
