Nigeria’s stock investors have booked about N859billion loss in two trading this week after weekend’s threat by United States President Donald Trump.
The stock market furthered its negatives by 0.72 percent on Tuesday, the second trading days after Trump’s threat to launch a military invasion of Nigeria. Cumulatively, the market has decreased by 0.97 percent this week, decreasing the record return year-to-date (YtD) to 48.29 percent.
“The market remains in a stable bullish regime despite recent selling pressure. This pressure appears to be healthy profit-taking, an expected action during a bull run. That said, we cannot rule out the possibility of further downside in a large-cap stock that posted strong gains coming into this week,” Lagos-based Vetiva research analysts said in their November 3 post-trading note.
Read also: Stocks shed over N240bn as investors reprice naira assets on Trump’s threat
The stock market is seeing major pullback in early trading this Month after record rally by 8 percent in October.
The Central Bank of Nigeria (CBN) will conduct its first Treasury Bills (T-bills) Primary Market Auction (PMA) for the month on Wednesday, November 5, offering a total of N650billion across the three tenors.
The offer ranges from N100billion in 91-day bill, N100billion in 182-day bill, and N450billion in 364-day bill. Maturing bills worth N15.33billion, N38.49billion, and N608.93billion across the respective tenors are expected to improve system liquidity.
Nigerian assets have fallen since this week, confirming investors’ fears that Trump’s threat could raise the risk premium on Nigerian assets, thereby eroding recent gains achieved by the nation’s reforms.
Reports indicate that President Bola Tinubu is close to completing the long-delayed appointment of ambassadors to Nigeria’s foreign missions, following months of complaints about the country’s limited diplomatic representation abroad.
The renewed push to formalise the appointments comes amid tension with Washington following Trump’s recent threats of military action over disputed claims of Christian persecution in Nigeria.
At the Nigerian stock market, the NGX All-Share Index (ASI) and Market Capitalisation depreciated from Friday’s highs of 154,126.46 points and N97.829 trillion respectively to 152,629.6 points and N96.970 trillion. The market’s performance indices had closed Monday at 153,739.11 points and N97.582 trillion.
