Tag: Nigerian Exchange

• Profit-taking, Trump’s threat turn market red

Global equities closed weekend on the negative as Nigerian equities closing with a net loss of N2.8 trillion.

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.

Afrinvest reported that across Europe, despite lingering expectations of a possible policy pivot by the European Central Bank later in December, equities traded broadly lower amid weak earnings updates and muted growth prospects.

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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.

• N1.3tr Sukuk listings

Nigerian Exchange (NGX) would use its fast-growing non-interest finance board to expand access to amenable capital, especially to the productive sector of the economy.

Chairman, Nigerian Exchange Group (NGX Group), Alhaji (Dr.) Umaru Kwairanga, said the Exchange remains committed to playing leading roles in advancing Africa’s Islamic finance ecosystem through the strategic expansion of its non-interest finance board

According to him, the NGX’s non-interest finance board has become a central platform for expanding access to Sharia-compliant financial instruments and attracting investors seeking transparency, inclusivity, and sustainability.

“Through the Non-Interest Finance Board, NGX is building a dedicated platform for Sukuk, Islamic collective investment schemes, and non-interest exchange-traded funds.

“Our goal is to broaden market participation while channeling capital towards productive sectors of the economy,” Kwairanga said.

He pointed out that NGX currently hosts over N1.3 trillion in listed Sukuk, reflecting growing investor appetite for assets that deliver both financial returns and social impact.

He assured that with collaboration with the Securities and Exchange Commission (SEC) and the National Insurance Commission (NAICOM), NGX would continue to strengthen governance frameworks and deepen the non-interest capital market to attract a broader base of ethical investors.

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Chief Executive Officer, Nigerian Exchange (NGX), Mr. Jude Chiemeka, also highlighted the strategic role of non-interest finance in driving sustainable economic transformation and enhancing market inclusion.

He said: “At NGX, our non-interest finance board represents more than a platform, it embodies our commitment to unlocking ethical capital, diversifying investment opportunities, and driving sustainable development.

He noted that by leveraging innovation and strategic partnerships, NGX is creating pathways for inclusive growth and positioning Nigeria at the forefront of Islamic finance in Africa.

Kwairanga and Chiemeka spoke at the 7th African International Conference on Islamic Finance (AICIF) in Lagos. The conference was organised by Metropolitan Skills Limited in collaboration with SEC. The two-day event convened policymakers, regulators, development partners, and market participants to explore policy reforms, product innovation, and strategies to unlock liquidity across Africa’s Islamic finance markets.

Nigeria’s non-interest capital market has recorded significant expansion in recent years, with sovereign Sukuk issuances raising over N1.4 trillion to fund multiple projects nationwide. As the market continues to mobilise long-term, low-cost capital for infrastructure and sustainable development, Nigeria stands poised to lead Africa’s transition toward a more inclusive, ethical, and resilient financial future.

The federal government has commended the listing of Legend Internet Plc on the Nigerian Exchange (NGX), describing the public quotation as historic.

Senior Special Assistant to the President on Entrepreneurship Development in Communications, Innovation and Digital Economy, Ms. Chalya Shagaya,  who paid a courtesy visit to the headquarters of Legend Internet, said the company’s recent listing was a milestone achievement.

She highlighted the alignment of this success with the Renewed Hope Agenda of President Bola Tinubu, emphasizing the administration’s dedication to building a business friendly environment driven by digital transformation and inclusive economic growth.

Shagaya congratulated Mr. Bruce Ayonote and the Legend team on the successful listing of two billion shares on the NGX.

 The listing had boosted the Exchange’s market capitalisation by N12.4 billion.

Shagaya noted that this historic listing, being the first by an indefinite telecom operator in Nigeria, reflects strong investor confidence in Nigeria’s digital economy.

“The listing of Legend Internet Plc is not just a corporate achievement, it is a national win. It sends a powerful message to indigenous digital and tech companies that the capital markets are within reach,” Shagaya said.

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She also commended the company on its inclusivity efforts, noting that the majority of Legend’s executive and senior staff are women. She described this as a progressive example of gender representation in leadership, which aligns with national goals for women’s inclusion in economic development.

She expressed readiness to support Legend and its affiliate company Suburban in future initiatives.

According to her, areas of potential collaboration discussed include expansion of digital infrastructure, innovation policy development, and capacity building programs for entrepreneurs.

Shagaya also stressed the ripple effect such achievements can have on the broader ecosystem, from enhancing local content development and broadband access to creating jobs and fostering innovation.

She encouraged Legend to further engage in mentorship, tech training, and entrepreneurship support initiatives.

“Legend’s story is one of vision, resilience, leadership, and inclusivity,” she concluded. “It is the kind of story this administration is proud to champion and we look forward to partnering with more companies that are pushing the boundaries of what is possible,” Shagaya said.

Nigerian Exchange Group (NGX Group) Plc has acquired equity stake in Ethiopian Securities Exchange (ESX), the first securities exchange in the East African country.

The transaction will see NGX Group and other private investors holding majority equity stake of 75 per cent while the Ethiopian government holds the balance.

NGX Group is among the top institutional investors that injected capital into the operationalisation of the ESX alongside FSD Africa, a UK-backed non-profit financial institution, and Trade and Development Bank Group (TDB), the financial arm of the Common Market for Eastern and Southern Africa (COMESA) trade block.

ESX significantly surpassed its initial target by raising about 1.3 billion Ethiopian Birr (ETB) from the private sector.

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Chairman, Nigerian Exchange Group (NGX Group) Plc, Alhaji Umaru Kwairanga, said the strategic investment not only marked NGX Group’s entry into East Africa but also underscored its commitment to driving growth and innovation in the African capital markets, while strategically positioning itself as the largest foreign institutional investor in the ESX.

According to him, the investment in the ESX reflects NGX Group’s confidence in the potential of Ethiopia’s rapidly growing economy and capital market.

He noted that by partnering with ESX, NGX Group aims to support the development of a vibrant and resilient financial ecosystem in Ethiopia, fostering increased investor participation and capital formation.

“Our partnership with ESX is a resounding affirmation of our unwavering dedication to promoting economic development, transparency, and exemplary corporate governance standards that foster an environment conducive to inclusive growth, even as we aim to maximize value for our esteemed shareholders,” Kwairanga said.

Group Managing Director, NGX Group Plc, Mr Temi Popoola, explained that through the investment, NGX Group aims to contribute to robust regulatory frameworks and foster best practices within the ESX ecosystem.

He said NGX Group remains dedicated to providing ongoing technical assistance and capability enhancements to support the successful operations and growth of the ESX.

“We are excited to announce our investment in the Ethiopian Stock Exchange, which represents a significant milestone in our expansion strategy. Ethiopia is one of Africa’s fastest-growing economies, with immense potential for investment and growth.

“We believe that by partnering with the Ethiopian Stock Exchange, we can leverage our expertise and experience to contribute to the development of a robust and dynamic capital market in Ethiopia,” Popoola said.

He assured that  through strategic partnerships and investments, NGX Group aims to facilitate cross-border investment flows, enhance liquidity, and promote economic development across the continent.

Chief Executive Officer, Ethiopian Securities Exchange (ESX), Tilahun Kassahun, described the NGX Group investment as a build up on existing supports from Nigeria.

“We are thrilled to announce that the capital raise for Ethiopia’s first securities exchange has exceeded our expectations, reflecting the unwavering confidence of investors in the potential and prospects of Ethiopia’s economic landscape. We are pleased to welcome the NGX Group as a strategic partner, building upon the existing support we have received from the NGX Group,” Kassahun said.

With this investment, Popoola will join the board of ESX as a nominee of NGX Group.