Nigeria’s equities market staged a partial recovery this week, regaining an estimated ₦2.4 trillion in value after suffering its worst monthly decline on record in November, when more than ₦6.5 trillion was erased amid mass sell-offs.
The market bounce was driven by renewed bargain-hunting as investors returned to undervalued large- and mid-cap stocks that had been aggressively sold during the downturn. Analysts attribute the cautious resurgence to value-driven entries and a slight improvement in investor sentiment after weeks of uncertainty.
November’s historic crash stemmed largely from fears surrounding the proposed 30% Capital Gains Tax (CGT), which triggered widespread panic selling and dragged the Nigerian Exchange (NGX) to unprecedented lows.
Market experts warn, however, that the recovery may remain fragile. “Investors saw an opportunity after prices fell far below fundamentals,” said one Lagos-based portfolio manager. “But sustained stability will depend on clearer policy signals and stronger macro fundamentals.”
Still, the partial rebound offers some relief to market participants as the year winds down. Analysts say the market’s direction in the coming weeks will hinge on fiscal policy developments, foreign inflows, and institutional investor confidence. Visit www.jocomms.com for more news.
