Stocks shed over N240bn as investors reprice naira assets on Trump’s threat

Nigeria’s stock investors may have started repricing the naira asset class which nosedived by 0.25 percent on Monday November 3, the first trading day after weekend’s threat by United States President Donald Trump.

Equities investors booked about N247billion loss at the close of trading on Monday as market digests the implications of Trump’s recent decision on Nigeria.

Ahead of trading this week, there were fears that Trump’s threat to launch a military invasion of Nigeria could raise the risk premium on Nigerian assets while threatening to erode recent gains achieved by the nation’s reforms.

The NGX All-Share Index and Market Capitalisation depreciated from Friday’s highs of 154,126.46 points and N97.829 trillion respectively to 153,739.11 points and N97.582 trillion.

The record dip in Nigeria’s stock market in the first trading day in November impacted its returns year-to-date (YtD) which stood lower at +49.37 percent

Trump had, on Friday, designated Nigeria as a ‘Country of Particular Concern,’ following it up on Saturday with a threat to cut off all US aids to the nation and invade it to “wipe out Islamic terrorists” allegedly committing a genocide against Christians.

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Following Friday’s positive close, Futureview research analysts expected a positive rebound in equities this week, saying their optimism is “fuelled by renewed interest in undervalued stocks, upbeat expectations for Q3 earnings, and improving market liquidity.”

“Broader sentiment should remain positive as investors position ahead of year-end portfolio rebalancing,” they noted.

Also, the stock market of Africa’s most populous nation on Monday defied positive sentiment by Coronation Research analysts before Trump’s outlook.

Coronation Research analysts had said: “Looking ahead, we expect a mild bullish tone driven by bargain hunting given the uptick recorded at the last trading session of last week and investors continue to absorb nine-month earnings reports.”

“We will continue to monitor post-earnings market reactions and reassess our positioning accordingly, ensuring that the portfolio remains strategically aligned for optimal returns,” CardinalStone Research analysts said in their Model Equity Portfolio (MEP) on November 3.

The threat, issued through the President Trump’s official X handle, came as he ordered the Pentagon to “prepare for a possible action” as a lethal response to the alleged killings.

Analysts say these fiery comments could upend the recent reforms gains and undermine efforts of the government to court foreign investors and, by extension, rattle the newly found stability of the naira.