Selloffs of shares dominated the Nigerian Exchange Limited, NGX, as investors lost over N6.544 trillion of their investment in November 2025 following concern on Capital Gain Tax, CGT, and interest rate among other macroeconomic factors.
Consequently, the NGX market capitalisation, which represents the total value of investment in shares, declined to N91.286 trillion last Friday from N97.830 trillion as at October, 31, 2025.
In the same vein, another stock market indicator, NGX All Share Index, ASI plunged by 6.9% to close last Friday at 143,520.53 points from 154,126.45 points in October 2025.
Analysts attributed the huge loss by the market to investors’ flight for safety in the face of unclear policy direction regarding the Capital Gains Tax, among others.
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“These uncertainties have triggered panic selling,with investors and traders cashing out of profits before they are eroded. The delayed review of the CGT by the government continues to beat the market, driving negative sentiment and reflecting a lack of confidence in the NGX, policy makers and economic managers.
Also, market operators had expected the Monetary Policy Rate, MPR, to come down in view of the falling inflation rate, but the Central Bank of Nigeria retained the rate at 27%” an analyst said.
Meanwhile, on Week on Week, WoW analysis, the market declined marginally last Friday by 0.14%, with ASI closing at 143,520.53 points from 143,722.62 points recorded in the previous week.
Similarly, the market capitalisation declined by N13 billion to close at N91.286 trillion from N91.410 trillion the previous week.
A total turnover of 4.140 billion shares worth N115.889 billion in 102,351 deals was traded last week by investors on the floor of the Exchange, in contrast to a total of 2.668 billion shares valued at N106.264 billion that exchanged hands the previous week in 107,998 deals.
The Financial Services Industry (measured by volume) led the activity chart with 3.358 billion shares valued at N81.175 billion traded in 43,392 deals; thus contributing 81.10% and 70.05% to the total equity turnover volume and value respectively.
Reacting on market outlook, analysts at InvestData Consulting Limited stated:” Investors should brace up for cautious trading in the coming week, even as Profit-taking may continue to dominate broad-market dynamics, while select stocks with strong technical momentum particularly in growth-oriented sectors could provide upside opportunities. Macroeconomic developments, earnings reports, and global interest rate expectations will likely shape market sentiment”.
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