The Nigerian Exchange (NGX) recorded its first monthly decline since March, ending a seven-month bullish streak in November.
The pullback was primarily triggered by widespread profit-taking among investors and heightened concerns over the potential introduction of capital gains tax on stock market transactions.
These twin pressures led to a sharp erosion of investor confidence, resulting in a staggering N6 trillion loss in total market capitalization over the month.
Market analysts noted that many investors opted to lock in substantial gains accumulated throughout the year, particularly ahead of anticipated policy announcements that could impose new fiscal burdens on equity investments.
The sell-off gained momentum as institutional and retail participants alike moved to secure profits, amplifying downward pressure on share prices across multiple sectors.
Despite the setback, several analysts remain cautiously optimistic about a potential rebound in the coming months, citing resilient corporate earnings and improving macroeconomic fundamentals. They advise investors to view the current correction as a healthy consolidation phase rather than the onset of a prolonged bear market.
