CHANNELSTV
The downturn is largely attributed to the ripple effects of U.S. President Donald Trump’s recent tariff policies, which have unsettled global markets.
Nigerian equities experienced a significant downturn on Monday, with the All Share Index (ASI) falling by 1.23%, marking its steepest single-day decline this month. This drop resulted in a loss of approximately ₦659 billion in market capitalization, closing at ₦65.488 trillion. Leading contributors to this decline included Oando and Honeywell Flour Mills, which saw their stock prices plummet by 10% and nearly 10% respectively.
The downturn is largely attributed to the ripple effects of U.S. President Donald Trump’s recent tariff policies, which have unsettled global markets. These tariffs have not only led to a 2.3% drop in the S&P 500 but have also caused significant declines in European and Asian markets.
Analysts warn that the Nigerian market may continue to face volatility if global investors reduce exposure to emerging markets. Stocks of Nigerian companies with substantial foreign dealings, particularly in the oil and gas sector, are expected to be most affected.
In response to these developments, experts advise Nigerian policymakers to reassess trade strategies and bolster non-oil exports to mitigate potential economic shocks. Dr. Tunde Adebayo emphasizes the need for diversification beyond crude oil to safeguard against global market fluctuations.
As the trade situation evolves, stakeholders are closely monitoring its impact on Nigeria’s economy, particularly in terms of foreign direct investment and currency stability. The government’s proactive measures will be crucial in navigating the challenges posed by these international trade tensions.