Trading data at the Nigerian Exchange (NGX) showed that the All Share Index (ASI)- the value-based common index that tracks all quoted equities at the NGX, declined by 2.11 per cent to close at 149,524.83 points. Aggregate market value of all quoted equities also dropped to N94.9 trillion at the weekend as against N97.7 trillion recorded as week’s opening value.

Data provided by Afrinvest West Africa showed that global equities drifted lower during the week as profit-taking in technology stocks, hawkish comments from some central bank officials, and mixed economic data tempered the optimism that had buoyed markets in recent weeks.

Although expectations of near-term rate cuts in the United States and Europe remain intact, investors turned more cautious amid signs of uneven global growth and renewed geopolitical concerns. Consequently, the MSCI World Equity Index declined by 2.0 per cent, reflecting a broad risk-off tone across developed and emerging markets.

In the United States, equities retreated as investors took profits from mega-cap technology and AI-linked stocks following a string of mixed corporate earnings and weak macroeconomic prints.

Also, the ongoing government shutdown continued to disrupt economic operations, delaying key data releases and forcing the Federal Aviation Administration to cut flight operations due to staffing shortages. Meanwhile, the weaker-than-expected ISM Services PMI-Actual: 50.0 per cent versus 51.7 per cent expected, reinforced concerns of slowing activity, while Fed officials reiterated a “data-dependent” stance on rate cuts, dampening hopes of a November policy easing. As a result, the S&P 500 and NASDAQ indices fell 1.8 per cent and 2.8 per cent respectively.

As such, France’s CAC 40 and Germany’s XETRA DAX indices fell 2.4 per cent and 1.9 per cent respectively, while UK’s FTSE All Share index dipped 0.9 per cent weighed by losses in industrials and energy sectors despite modest gains in defensive sectors.

In Asia, performance was mixed as investors balanced optimism over semiconductor demand with caution surrounding China’s fragile recovery. Japan’s Nikkei 225 index slumped 4.1 per cent dragged by weakness in industrial and technology exporters amid Yen volatility. Conversely, Hong Kong’s Hang Seng index rose 1.3 per cent.

Market analysts remained optimistic on the outlook for Nigerian equities noting that despite the steep decline, the broader market picture remains positive.

Analysts pointed out that in the nine months to September 2025, total equities transactions on NGX reached N8.538 trillion, with domestic investors accounting for 78.44 per cent of trading activity. Significantly, foreign inflows of N1.030 trillion exceeded outflows of N810.39 billion, demonstrating continued international confidence in Nigerian equities.

Analysts said the downturn might represented a healthy correction and attractive entry points for long-term investors seeking value.

The pullback at the NGX followed recent remarks from United States President Donald Trump threatening military action against Nigeria, which prompted some cautious repositioning, alongside natural profit-taking following previous rallies. This drove declines across several blue-chip counters.

Managing Director, Arthur Steven Asset Management, Mr. Olatunde Amolegbe said the main drivers of the decline were domestic.

According to him, the market downturn was driven by profit-taking after the eight per cent gain in October and concerns over proposed 25 per cent capital gains tax on large portfolios.'

“Investors are advised to monitor foreign participation, policy clarity, and key economic indicators, while fundamentals in the financial and energy sectors remain supportive,” Amolegbe said.

Managing Director, Globalview Capital Limited, Aruna Kebira, described the downturn as temporary, noting that strong fundamentals underpin the market.

He said: “The current downturn is temporary as fundamentals remain strong. Valuations are now even more attractive and should soon draw renewed buying interest.”

Chief Executive Officer, Nigerian Exchange (NGX), Jude Chiemeka said the price correction was an opportunity for strategic portfolio positioning.

He said: “A well-diversified portfolio across equities, fixed income, and alternative assets helps investors manage risk and capture opportunities as the market recalibrates”.

Market watchers have also expressed concerns that uncertainty surrounding the planned 25 per cent capital gains tax set to take effect in 2026 might have amplified the correction.

They argued that Nigeria’s corporate fundamentals remain robust as listed firms continue to sustain profitability and dividend payouts across key sectors, signaling underlying strength.

Analysts encourage investors to view the pullback as a strategic repositioning phase rather than a prolonged downturn, emphasizing that disciplined investors can capitalize on improved valuations to build long-term wealth.