Nigeria’s equities market closed the week ending November 7 with a N2.8 trillion decline in market capitalisation. Nonetheless, market analysts are optimistic, characterising the downturn as a wholesome correction that presents engaging entry factors for long-term buyers searching for worth.
The pullback adopted current remarks from US President Donald Trump, who threatened army motion towards Nigeria, prompting cautious repositioning alongside pure profit-taking following earlier rallies. This drove declines throughout a number of blue-chip counters.
Nonetheless, consultants stay bullish in the marketplace’s prospects. Aruna Kebira, managing director/CEO of Globalview Capital Restricted, described the downturn as non permanent, noting that sturdy fundamentals underpin the market. “The present downturn is non permanent as fundamentals stay sturdy. Valuations at the moment are much more engaging and may quickly draw renewed shopping for curiosity, “ he stated.
Information from NGX confirmed the All-Share Index (ASI) declined 2.11 per cent week-on-week to shut at 149,524.83 factors, whereas market capitalisation dropped to N94.9 trillion from N97.7 trillion the earlier week.
Regardless of the weekly decline, the broader market image stays optimistic. Within the 9 months to September 2025, whole equities transactions on NGX reached N8.538 trillion, with home buyers accounting for 78.44 per cent of buying and selling exercise.
Considerably, overseas inflows of N1.030 trillion exceeded outflows of N810.39 billion, demonstrating continued worldwide confidence in Nigerian equities.
The chief govt officer of Nigerian Alternate Restricted (NGX), Jude Chiemeka, views the correction as a possibility for strategic portfolio positioning. “A well-diversified portfolio throughout equities, mounted earnings, and various belongings helps buyers handle threat and seize alternatives because the market recalibrates,” he stated.
Market watchers word that, whereas uncertainty surrounding the deliberate 25% capital positive factors tax set to take impact in 2026 might have amplified the correction, Nigeria’s company fundamentals stay sturdy. Listed companies proceed to maintain profitability and dividend payouts throughout key sectors, signalling underlying energy.
Analysts encourage buyers to view the pullback as a strategic repositioning part slightly than a protracted downturn, emphasising that disciplined buyers can capitalise on improved valuations to construct long-term wealth.
