Kayode Tokede 

The domestic stock market dropped by N2.5 trillion in four days as investors continued to trade with caution amid U.S President Donald Trump plans to carry out   military action over the continued killing of  Christians by Islamist militants in Nigeria.

As gathered  by THISDAY, the market capitalisation of listed companies that opened for trading this week at N97.829 trillion has depreciated by 2.6 per cent or N2.51 trillion to close yesterday at N95.317 trillion.

Consequently, the Nigerian Exchange Limited All-Share Index (NGX ASI) fell by 2.7per cent or 4,099.91basis points to close at 150,026.55basis points from  154,126.46 basis points when the stock market opened for trading this week.

As a result, the NGX ASI  in its Month-to-Date and Year-to-Date returns settled at -2.7per cent and +45.8per cent, respectively.

In a post on Truth Social, Trump said he had instructed the Pentagon to “prepare for possible action” and warned of an immediate suspension of U.S. aid to Nigeria, Africa’s most populous nation and an OPEC member.

President Bola Tinubu rejected Trump’s comments, calling them a misrepresentation of Nigeria’s “consistent and sincere efforts to safeguard freedom of religion and belief for all Nigerians.”

The chief operating officer of InvestData Consulting Limited, Mr Ambrose Omordion , attributed the downward movement in the stock market to panic trading by investors over President Donald Trump threats posted on social media.

He noted that foreign investors are expected to react by taking profit-taking in listed fundamental stocks.

He, however,  urged investors to take positions in some of these stocks amid growing  fundamentals of listed companies on the NGX.

Capital market  analysts attributed the downward movement in the Nigerian stock market   to speculative trading by investors. 

On market outlook, analysts at Imperial Asset Managers Limited said, “we expect a cautious trading tone to persist as investors continue profit-taking and portfolio adjustments ahead of year-end. However, selective buy-side interest in fundamentally sound stocks may cushion further losses, keeping the market largely range-bound in the near term.”

The Managing Director, Globalview Capital Limited, Mr. Aruna Kebira in a chat with  THISDAY stated that investors’ profit-taking in Aradel Holdings Plc, among others  impacted on the stock market performance.

“If the stock market maintained its downward trend throughout this week, it can easily be linked to threats by President Donald Trump. The stock market is meant to react to market forces as witnessed in investors profit-taking  key fundamental stocks.

“We cannot  conclude that investors reacted to President Donald Trump’s threats. Possibly it is going to happen is uncertain,” Kebira  added.

Speaking also, the Vice President, Highcap Securities Limited, Mr David Adnori stated that investors  on the NGX traded with  caution, stressing that the Nigerian market , currently dominated by local investors, can withstand external shocks.

THISDAY had reported that the Nigerian stock  market has gained N35.1 trillion in 10 months of 2025, attributable to foreign exchange,  among other  reforms of the Federal Government that have boosted confidence.

For the 10 months 2025 performance of the stock market, analysts  have attributed the  55.87per cent growth to stability in the foreign exchange market, companies recovering from foreign exchange losses, market liquidity, capital inflow, dominance of domestic investors, increasing portfolio investment, Central Bank of Nigeria (CBN)’s banking sector recapitalisation  and insurance sector reforms have played a critical role in overall stock market performance in the period under review.

According THISDAY investigation, the market capitalisation in October 2025  gained N7.25trillion or eight per cent from N90.580 trillion it closed for trading in September 2025 to N97.829 trillion in October 2025, while the NGX ASI advanced by 11,415.98 basis points or nearly eight per cent to 154,126.46 basis points from 142,710.48 basis points the major NGX index closed for trading in September 2025.

In October 2025, the stock market crossed the 150,000 basis points mark historic  record amid slowdown in inflation figures, appreciation of the Naira at the foreign exchange market, the Central Bank of Nigeria ((CBN) cut down on interest rate to 27 per cent and impressive nine months ended September 2025 result and accounts posted on the bourse.