NGX Dips Further by 5.01% as Investors Lose ₦4.65trn on Tuesday

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The Nigerian stock market recorded a significant decline on Tuesday as investors lost approximately ₦4.65 trillion in a single day of trading, with only four stocks on the gainers’ table, a sell pressure that has persisted in recent times.

The All-Share Index, which tracks the general market movement of all listed stocks, dipped by 5.01 per cent to 141,327.30 basis points, dropping the year-to-date return of the NGX to 37.31 per cent.

Similarly, the market capitalisation, which is the total value of the shares of listed companies on the Nigerian Exchange Limited (NGX), dropped significantly by 4.91 per cent to ₦89.88 trillion at the close of trading on Tuesday from ₦94.53 trillion it opened the same day.

Berger Paints, FCMB, AXA Mansard Insurance, and NCR Nigeria were the only four stocks that recorded gains against 62 other stocks that printed losses.

The widespread losses were led by Academy Press, BUA Cement, Custodian & Allied, Dangote Cement, and DEAP Capital Management & Trust.

Analysis of market data from the NGX shows that all major sectoral indices tracked closed in the red.

The industrial goods index recorded the highest loss, dropping by 8.55 per cent to close at 5,387.16 points

This was followed by the banking index, which went down by 7.27 per cent to 1,298.86 points. The oil and gas index shed 4.65 per cent to close at 2,644.24, while the insurance index declined by 4.33 per cent to 1,042.64.

Consumer goods index dropped by 2.2 per cent to close at 3,323.92, and the commodity index declined by 2.07 per cent to 1,185.31 points.

Shareholders are concerned about recent policies

The National President of the New Dimension Shareholders Association, Patrick Ajudua, said it was not unexpected for the market to decline at this period given the fact that the year is nearing an end and investors will start to appraise their investment with a view to re-strategising.

He, however, said, “We can’t rule out the multiple effects of the implementation of the capital gain tax, which to me is unfriendly to capital market investors.

“If anything comes in 2026, the market may not experience the boom it has this year as investors will develop a cool fit towards the market.”

He stressed that this is the reason shareholders have called on the government to reverse the implementation of the policy, which he presumed would do more harm to the capital market investors.

“Already, we are suffering from the re-imposition of withholding tax on sales of shares which have hitherto been waived before,” Ajudua added.

The National Chairman of the Progressive Shareholders Association of Nigeria (PSAN), Boniface Okezie, said many factors are responsible for the negative sentiment the market is witnessing.

He blamed the Central Bank of Nigeria (CBN) for its policy of not allowing the banks to pay dividends.

“CBN, on the other hand, is to be blamed for its policy on the banks not to pay dividends to their shareholders because of what it terms forbearance on non-performing loans.

“It is a big problem CBN have caused to the banks among their shareholders,” Okezie said.

“The tax policy introduced by the government is another wahala brewing up as over taxation is not good for the markets. Every gain should not end up in paying taxes to the government.

He decried that the government is not helping the growth of the market

“Dividends taken over by the government through the SEC [Securities and Exchange Commission] is another factor militating against the market.

“There is not much to be done by NGX because they are doing their best to see the market growth, which they must be giving kudos to,” Okezie said.

He added that the Trump threat may be another factor, as insecurity in the country is very prevalent, and people are already jittering over what could happen, coupled with the wobbling macroeconomic environment that is worrisome.

Pinnacle Daily reported earlier on Tuesday that the Managing Director/Chief Executive Officer of Financial Derivatives Company Limited, Bismarck Rewane, has urged the federal government to either reduce the capital gain tax (CGT) to 10 per cent or defer the implementation date.

He pointed to the new CGT rate as one of the factors causing the sell pressure in the market, resulting in the downward movement of the All-Share Index and market capitalisation.

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