December 01, (THEWILL) — The Nigerian equity market closed November on a weak note as the NGX All-Share Index (ASI) posted its worst monthly performance of 2025, falling by 6.88% to close at 143,520.53 points, down from 154,126.46 at the end of October.
Market capitalisation lost a sizable N6.54 trillion, dropping from N97.83 trillion in October to N91.29 trillion by November 28. Despite the decline, the market remains significantly positive year-to-date, having gained more than N28 trillion compared to its 2024 close, supported by earlier macroeconomic reforms and improved corporate earnings.
Impact of FX Pressure
The equities downturn coincided with renewed pressure on the naira during November. The currency weakened at the official market to around N1,443.90–N1,454.19 per US dollar amid weak FX inflows and rising foreign-payment obligations.
The currency slump heightened investor concerns over inflationary pressures and squeezed corporate margins especially for import-dependent firms contributing to the risk-off sentiment that defined the month.
Market Activity High Despite Sell-off
Investor participation remained robust. In the week ending November 28, trading volume surged to 4.14 billion shares worth N115.88 billion across 102,351 deals, up from the previous week’s 2.66 billion shares.
However, the strong turnover did not prevent losses: investors shed about N129 billion that week as profit-taking persisted across large-cap counters.
Even so, the market staged a mild rebound on the last trading day of the month with a N180 billion daily gain although not enough to reverse the monthly decline, but indicative of liquidity waiting to re-enter the market.
Mixed Sentiment Across Counters
While the broader market sank, several stocks posted impressive gains, highlighting pockets of opportunity for selective investors.
Top Gainers (End-November)
• Ikeja Hotel – jumped by +10.00 percent (from N27.50 to N30.25).
• NGX Group – rose by +9.98 percent (from N51.10 to N56.20).
• Academy Press Plc – gained +9.70 percent (from N6.70 to N7.35).
Other advancers included Cadbury Nigeria and Omatek Ventures, which made notable recoveries on the final sessions of the month.
Major Losers
• Abbey Mortgage Bank Plc -10percent (from N6.50 to N5.85).
• Meyer Plc –9.97 percent (from N14.55 to N13.10).
• Sunu Assurances Plc –9.89% (N4.35 to N3.92).
• Sovereign Trust Insurance Plc –9.09% (N2.97 to N2.70).
The divergence shows that although macroeconomic pressures drove the broader downturn, stock-specific fundamentals and speculative positioning still influenced individual performance.
Sector Index Performance
Sectoral performance in November underscored the shift toward defensive and value-oriented plays:
• Consumer Goods Index: +0.57%
• Banking Index: +0.25%
• Industrial Goods Index: +0.13%
Conversely, more vulnerable segments such as Insurance underperformed, dragged lower by selloffs in small and mid-cap counters.
This rotation indicates investor preference for sectors tied to essential consumption, stable income streams, or hard-asset exposure a characteristic response during periods of FX instability and policy uncertainty.
Drivers of November’s Decline
Several catalysts for the month’s sell-off:
• Profit-taking following earlier 2025 rallies, especially in heavyweight stocks
• Concerns over the planned increase in Capital Gains Tax (CGT) from next year
• Geopolitical jitters and global market volatility, which filtered into emerging-market sentiment
• FX-driven cost pressures weighing on corporate earnings outlook
Outlook: Cautious Optimism
Despite November’s setback, the market remains ahead for the year and could stabilise in December if FX supply improves and policy clarity emerges.
Analysts expect investors to continue favouring:
• Dividend-yield plays
• Banking names with strong capital buffers
• Consumer-goods companies with pricing power
• Industrial-goods stocks tied to infrastructure and hard-asset demand
A broader recovery, however, may depend on FX market stability, clarity on tax amendments, and improved foreign participation.
Ogochukwu Onwaeze
