Nigerian market drops by N201bn WoW amid volatility across globe
The Nigerian Exchange Limited (NGX) this week dropped by N201 billion by market capitalisation ( Week-on-Week) amid massive volatility in the global stock market.
For example, the market capitalisation dropped to N68.752 trillion yesterday, about N201 billion decline when compared to N68.952 billion the stock market opened for trading, while the NGX All-Share Index dipped by 0.62per cent WoW to close at 109,028.62 basis points from 109,710.37 basis points the market opened for trading.
The NGX ASI dropped by 0.14per cent to close at 109,028.62basis points yesterday from 109,183.02 basis points it opened for trading the previous day.
In the global market, markets took a hard hit yesterday after U.S. President Donald Trump’s tariff threats stirred fears of escalating trade tensions.
In a bold move, Trump proposed a 50per cent tariff on European Union imports starting June 1, and floated the idea of a 25per cent tax on iPhones made outside the United States.
The impact was immediate: stocks slid, the dollar weakened, and investors flocked to safe haven assets like gold and government bonds.
However, analysts at Cordros Research stated that investors sentiment in the Nigerian stock market turned negative this week, buoyed by investors’ reaction to the Central Bank of Nigeria’s decision to maintain the Monetary Policy Rate at 27.5per cent, alongside profit-taking in recent outperformers and a shift in capital flows toward the fixed income market.
“Looking ahead, we expect cautious trading to persist amid a lack of clear positive catalysts, with profit-taking in recent gainers offset by bargain hunting in beaten-down names. In the medium term, we expect sentiment to be shaped by macroeconomic trends and movement in fixed income yields,” analysts at Cordros Research said.
