Equities Market Sheds N6.5trn in November, Worst Monthly Loss on Record

By temitope adebayo

1 December 2025

Business

The Nigerian equities market closed November with an unprecedented loss of N6.5 trillion, marking the steepest monthly downturn ever recorded and deepening investor concerns as persistent selloffs dragged market value to multi-month lows.

Market capitalisation fell sharply from N97.829 trillion at the start of the month to N91.286 trillion as of November 28, 2025, while the NGX All-Share Index (ASI) retreated by 6.88 per cent to 143,520.53 points, driven by sustained profit-taking and growing anxiety over the impending implementation of a 30 per cent Capital Gains Tax from January 1, 2026.

Investment banker and stockbroker, Tajudeen Olayinka, noted that the sharp pullback reflected heightened investor reaction to both the planned CGT and external shocks linked to geopolitical uncertainties.

He explained that the combination of these pressures accelerated profit-taking in highly capitalised stocks. Vice Chairman of HighCap Securities, David Adonri, however, described the development as a normal short-term adjustment, stressing that the market’s underlying fundamentals remain resilient despite the volatility.

Chief operating officer of InvestData Consulting Limited, Mr. Ambrose Omordion, said the equities market ended November under intense selling pressure as investors locked in gains amid mixed sectoral performances and weak risk appetite.

He added that the pullback mirrored a broader wave of caution fuelled by inflationary concerns, FX pressures, fluctuating crude oil prices, and uncertainty around fiscal direction.

Omordion projected that trading patterns would remain mixed in the near term, with selective bargain-hunting likely to emerge as valuations become more attractive, especially as the market looks ahead to Q4 earnings that could reshape sectoral interest.

Analysts expect cautious and defensive positioning to dominate trading this week, as investors continue to digest the implications of the recent MPC decision to hold all policy parameters.

Cowry Assets Management Limited said the market is navigating a delicate balance between caution and pockets of optimism, noting that some investors are already positioning ahead of the Q1 2026 dividend season. The firm expects year-end profit-taking to continue, though fundamentally sound and oversold stocks may attract early bargain hunters.

Afrinvest Limited projected mild buying interest on attractive entry prices but warned that the bearish undertone could persist due to year-end liquidations and rising uncertainty ahead of the CGT rollout.

Imperial Asset Managers Limited added that the market would likely remain range-bound with a selective upward bias, driven by improving market breadth and accumulation in fundamentally strong counters across Banking, Telecoms and mid-cap stocks.

The cautious sentiment was evident last week as the NGX All-Share Index closed at 143,519.81 points, down 0.14 per cent week-on-week, with market capitalisation declining by the same margin to N91.286 trillion, representing N128 billion in value erosion.

Market breadth remained weak as only 26 stocks gained compared to 68 losers. Ikeja Hotel led the gainers with a 45.08 per cent rise to N30.25, followed by NCR Nigeria with 32.97 per cent to N54.65 and UACN with 12.71 per cent to N78.90.

Meyer topped the losers’ chart with an 18.89 per cent decline to N13.10, followed by SUNU Assurance at 14.78 per cent to N3.92 and UPDC with 11.93 per cent to N5.02.

A turnover of 4.140 billion shares valued at N115.889 billion in 102,351 deals was recorded last week, higher than the 2.668 billion shares worth N106.264 billion traded in 107,998 deals the previous week, underscoring heightened repositioning as investors tread cautiously into the final trading weeks of the year.