Economy
Nigerian Stocks to Further Succumb to External Shocks This Week
By Modupe Gbadeyanka
The Nigerian Stock Exchange (NSE) will further experience sell offs this week, as uncertainty in the global market weigh on the local market.
This is the view of some financial analysts, who said more foreign portfolio investors will exit the local bourse for better yields outside.
The Nigerian stock market, which was one of the best performers in 2017, having recorded a growth of over 40 percent, is presenting at -17.20 percent.
The local bourse has struggled in most parts of this year as a result of low investor confidence, especially with the political tensions in the land.
Another factor that has contributed to this is the raising of rates by the United States Federal Reserve System this year, which has made investors to exit emerging markets in droves. Another increase is expected to happen next month when they meet on December 18 and 19, 2018.
The decline in the prices of crude oil in the global market has also had an effect on the Nigerian market, which is fuelling speculations that the local authorities may likely devalue the Naira, with the external reserves facing south lately.
Last Friday, the Brent crude oil price went below $60 for the first time since October 2017 to $59 per barrel at the international market, which Nigeria’s foreign reserves depreciated to $41.5 billion on Thursday.
With fears of a possible devaluation, some investors are already selling off their Naira investments, stocks inclusive, to buy up some Dollars in order not to render their money worthless when the unexpected eventually happens.
Analysts at Business Post believe that with above fears in the psyche of investors, the Nigerian stock market will further be under selling pressure this week.
“We do not expect the market to return to the green territory at the close of this trading week. This is because some external factors will continue to weigh on the local bourse.
“We are of the view that the political tensions in the country, as the 2019 campaigns pick up gradually, will also continue to have a negative impact on the market,” Business Post analysts opined.
Last week, the All Share Index (ASI) went down by 1.2 percent week-on-week to settle at 31,678.70 points, while the market capitalisation reduced by N138.6 billion week-on-week to finish at N11.565 trillion.
According to analysts at Cowry Asset, “We expect the local bourse to close negatively (this week) as bearish activity is sustained.
“Speculators are expected to continue scrapping the market for short term gains amid attractive valuations and dividend yields.”
For those at Afrinvest, “We expect an undulating trend in market performance as the impact of bargain hunting in fundamentally sound stocks is expected to be countered by subsequent sell offs.
“However, we maintain our bearish outlook on the market over the near-term.”
“In the short to medium term, we expect the negative performance for the equities market to persist, amidst growing political concerns ahead 2019 elections, and absence of a positive market trigger.
“However, positive macroeconomic fundamentals remain supportive of recovery in the long term,” analysts at Cordros Research said.
By Adedapo Adesanya
The Naira lost 33 Kobo or 0.02 per cent against the United States Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEX) on Thursday, May 14, to trade at N1,370.89/$1 compared to the preceding day’s N1,370.56/$1.
However, the local currency further appreciated against the Pound Sterling in the official FX market during the session by N1.61 to close at N1,851.38/£1 versus N1,852.99/£1, and improved its value against the Euro by N2.21 to trade at N1,602.98/€1 versus Wednesday’s closing price of N1,605.19/€1.
Also, at the GTBank forex counter, the Nigerian currency gained N1 against the Dollar yesterday to sell for N1,381/$1 compared with midweek’s rate of N1,383/$1, and at the black market, it closed flat at N1,385/$1.
Data from the Central Bank of Nigeria (CBN) indicated that interbank FX turnover fell to $78.783 million across 103 deals from $130.549 million the previous day.
The Naira is forecast to be broadly stable, supported by dollar sales by the central bank and steady, higher oil receipts, with the market settling into a balance.
As of May 12, 2026, the country’s external reserves increased by $150 million or 0.2 per cent to $48.48 billion from $48.33 billion on May 5, 2026, providing support for the domestic currency.
In the cryptocurrency market, major digital coins closed mixed amid broader macroeconomic selling pressure.
Also, the US Senate Banking Committee approved the bipartisan Clarity Act, a key step toward comprehensive crypto market structure legislation that now heads toward a merger with a similar Agriculture Committee bill.
Investors bet that clearer US rules, including the Clarity Act’s separation of payment stablecoins from investment assets, will ease regulatory overhangs on its use case.
On the geopolitical scene, President Trump said the US does not need to reopen the Strait of Hormuz, changing an earlier stance and deepening concerns about elevated energy costs feeding into inflation.
Ripple (XRP) grew by 1.8 per cent to $1.46, Binance Coin (BNB) jumped 1.0 per cent to $676.37, Bitcoin (BTC) improved by 0.7 per cent to $80,371.72, and TRON (TRX) gained 0.6 per cent to sell at $0.3529.
But Dogecoin (DOGE) slid by 1.3 per cent to $0.1134, Ethereum (ETH) depreciated by 0.9 per cent to $2,247.38, Solana (SOL) went down by 0.7 per cent to $90.65, and Cardano (ADA) weakened by 0.1 per cent to $0.2656, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 each.
By Dipo Olowookere
The Nigerian Exchange (NGX) Limited gave up 0.10 per cent on Thursday on the back of profit-taking in most of the main sectors of the market.
Data from Customs Street showed that the insurance counter closed in green after it chalked up 0.46 per cent. This was not enough to offset the losses recorded by the others.
Business Post reports that the selling pressure witnessed yesterday contracted the banking space by 0.92 per cent, crashed the consumer goods segment by 0.13 per cent, battered the industrial goods index by 0.03 per cent, and depleted the energy counter by 0.02 per cent.
As a result, the market capitalisation retreated by N170 billion to N161.669 trillion from N161.839 trillion, and the All-Share Index (ASI) moderated by 265.08 points to 252,243.11 points from 252,508.19 points.
Despite the poor outcome, investor sentiment remained strong. The market breadth index was positive during the session after the bourse finished with 37 price gainers and 29 price losers.
Zichis eased by 9.99 per cent to N32.69, FTN Cocoa lost 9.87 per cent to trade at N9.95, Meyer depreciated by 9.83 per cent to N21.55, RT Briscoe shrank by 9.41 per cent to N15.40, and Neimeth contracted by 7.44 per cent to N9.95.
On the flip side, Learn Africa gained 10.00 per cent to sell for N9.90, Fidson appreciated by 9.97 per cent to N124.60, Austin Laz grew by 9.95 per cent to N4.09, Berger Paints rose by 9.92 per cent to N154.00, and Deap Capital increased by 9.90 per cent to N5.77.
Yesterday, market participants transacted 1.0 billion equities valued at N41.6 billion in 74,822 deals versus the 1.9 billion equities worth N118.1 billion traded in 76,557 deals a day earlier, showing a decline in the trading volume, value, and number of deals by 47.37 per cent, 6.48 per cent, and 2.27 per cent, respectively.
Chams exchanged 127.9 million shares for N501.2 million, VFD Group sld 10.7.1 million stocks worth N1.2 billion, First Holdco posted a turnover of 75.6 million equities valued at N5.4 billion, Access Holdings traded 50.3 million stocks worth N1.3 billion, and UBA transacted 44.9 million shares for N2.0 billion.
By Adedapo Adesanya
Crude oil marginally appreciated on Thursday after it was reported that about 30 vessels had crossed the Strait of Hormuz, with Brent crude oil futures gaining 9 cents or 0.09 per cent to trade at $105.72 a barrel, and the US West Texas Intermediate (WTI) futures expanding by 15 cents or 0.15 per cent to $101.17 a barrel.
Iranian state media reported that about 30 Chinese vessels were allowed safe passage by Iran through the Strait, which has been largely shut since the Iran war broke out at the end of February.
Before the report, a Chinese supertanker carrying 2 million barrels of Iraqi crude sailed through the contested waterway on Wednesday after being stranded in the Gulf for more than two months, while a Panama-flagged crude oil tanker managed by Japanese refining group Eneos had also passed.
Bloomberg also reported that the vessels were allowed to pass the Strait of Hormuz with the coordination of the Iranian authorities and Islamic Revolutionary Guard Corps’ navy, however, it added that it is yet unknown or unclear whether the US Navy side of the de facto blockade will also let them pass.
The move also follows formal requests by China’s foreign minister as well as its ambassador to Iran, with Iran reportedly agreeing based on safeguarding the two allies’ strategic partnership.
It also comes as President Donald Trump’s ongoing state visit to China, where he and President Xi Jinping agreed that the Strait of Hormuz must be open for the free flow of energy.
President Xi expressed interest in purchasing more US oil to reduce China’s dependence on the Strait of Hormuz, according to the White House. China, the world’s largest oil importer, is not a big buyer of US crude and has not imported any since May 2025 due to a 20 per cent import tariff imposed during the trade war.
Iran, a member of the Organisation of the Petroleum Exporting Countries (OPEC), also appears to have tightened control over the strait, cutting deals with Iraq and Pakistan to ship oil and liquefied natural gas from the region.
The International Monetary Fund (IMF) said the global economy is clearly moving into a middle “adverse scenario,” which would see global real GDP growth falling to 2.5 per cent this year from 3.4 per cent growth in 2025, citing the Iran war as the cause.
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