Naira and Stocks Dip as Market Reacts to Geopolitical Tension

Nigeria’s financial markets opened the week on a cautious note as the naira and equities recorded mild losses, reflecting investor reactions to renewed geopolitical tension and profit-taking after a strong October rally.

The All-Share Index (ASI) of the Nigerian Exchange (NGX) fell by 0.25% to close at 153,739.11 points, resulting in a market capitalization decline of about ₦244.9 billion, from ₦97.8 trillion to ₦97.5 trillion.

The downturn was largely driven by selloffs in medium and large-cap stocks, particularly within the banking, oil and gas, and consumer goods sectors, as investors booked profits from previous gains.

Market analysts observed that while recent political statements by global leaders briefly stirred discussions among traders, the decline was mostly a normal market correction following weeks of strong upward movement.

On the foreign exchange front, the naira weakened slightly to ₦1,438 per dollar at the official market, compared to ₦1,422.2 per dollar last Friday. Despite this, the local currency continues to show resilience, maintaining momentum from October’s impressive performance — its best in over 18 months.

October had been one of the strongest months for equities in 2025, with an 8% overall gain, second only to July. The rally was supported by solid corporate earnings and improving investor confidence in Nigeria’s reform-driven economic direction.

Market breadth closed negative, with 24 gainers and 39 losers.

• Union Dicon Salt Plc (+9.93%) and Omatek Ventures Plc (+9.92%) topped the gainers’ chart,
• while Honeywell Flour Mills Plc (-10.00%) and Northern Nigeria Flour Mills Plc (-9.98%) led the laggards.

Trading activity was upbeat, with total volume rising 18% to 627 million units, valued at ₦25.1 billion. UBA Plc led both volume and value charts, trading 136 million shares worth ₦5.53 billion.

Despite the mild pullback, analysts maintain that the overall market outlook remains positive, supported by robust earnings, stable foreign exchange conditions, and continued reforms under the current administration aimed at strengthening investor confidence and economic growth.