The Nigerian Stock Market (NGX) All-Share Index and market capitalization fell by 1.51% this week, closing at 97,100.31 points and N55.132 trillion, respectively, as investors weighed mixed corporate earnings, dividend announcements, and a slight dip in inflation.
This downturn occurred even as Nigeria’s headline inflation rate fell for the first time since December 2022, easing to 33.40% in July from 34.19% in June.
While the inflation drop was a welcome development, it did little to lift investor sentiment amid ongoing economic uncertainties.
Market Performance
The NGX All-Share Index ended the week 1.51% lower at 97,100.31 points, down from last week’s 98,592.12 points. Market capitalization followed suit, dropping to N55.132 trillion from N55.933 trillion.
- The overall market sentiment was bearish, with declines across most indices except for NGX Insurance (+0.79%), NGX Consumer Goods (+0.37%), NGX Oil & Gas (+5.25%), NGX Lotus II (+0.42%), and NGX Growth (+6.14%).
- The NGX Main Board Index led the declines, losing 2.00% to close at 4,654.62 points.
The NGX Banking Index also saw significant losses, falling 2.28% to 837.67 points, while the NGX 30 Index decreased by 1.19% to 3,598.60 points. The NGX ASeM Index remained unchanged.
Top Gainers
Despite the broader market decline, 39 equities posted gains this week. R T Briscoe Plc led the gainers with a 33.86% increase to close at N1.70, followed by TotalEnergies Marketing Nigeria Plc, which rose 19.69% to N511.90. Julius Berger Nigeria Plc also saw strong performance, gaining 18.18% to close at N130.00.
Other notable gainers included:
- Guinea Insurance Plc: up 17.65% to N0.40
- University Press Plc: up 12.39% to N2.45
- Nascon Allied Industries Plc: up 11.59% to N35.15
- Eterna Plc: up 11.11% to N22.00
- Dangote Sugar Refinery Plc: up 10.76% to N40.65
- SFS Real Estate Investment Trust: up 9.96% to N111.50
- Champion Breweries Plc: up 9.75% to N3.04
Top Losers
In contrast, 66 equities recorded declines, with Cutix Plc leading the losers, dropping 17.50% to N4.95. BUA Cement Plc fell 14.82% to N109.80, while Oando Plc decreased by 11.70% to N35.85.
Other significant losers included:
- Learn Africa Plc: down 10.89% to N3.52
- Chams Holding Company Plc: down 10.22% to N2.02
- Cadbury Nigeria Plc: down 9.95% to N18.10
- Academy Press Plc: down 9.03% to N2.62
- CWG Plc: down 8.73% to N5.75
- Deap Capital Management & Trust Plc: down 8.51% to N0.43
- Japaul Gold & Ventures Plc: down 7.95% to N2.20
Corporate Announcements
The week saw several key corporate announcements, particularly in dividend payments.
- Bua Cement Plc adjusted its share price following a N2.00 dividend, closing at N126.90 per share after the ex-dividend date.
- Similarly, Flour Mills of Nigeria Plc closed at N44.20 after a N1.80 dividend adjustment, while FBN Holdings Plc adjusted to N21.60 following a N0.40 dividend.
Access Holdings Plc extended its Rights Issue by ten days, now closing on August 23, 2024. The company’s Rights Issue involves 17.77 billion ordinary shares at N19.75 per share.
Economic data
Nigeria’s headline inflation rate decreased to 33.40% in July 2024, down from 34.19% in June, marking the first decline since December 2022.
- The National Bureau of Statistics reported that the month-on-month inflation rate for July was 2.28%, slightly lower than June’s 2.31%.
- The decrease in inflation was primarily driven by a slowdown in the prices of food and non-alcoholic beverages, which contributed 17.30% to the year-on-year inflation.
Outlook
Looking ahead, the market is expected to react to upcoming data releases, including the NBS reports on select food prices, AGO and petrol prices, transport prices, and capital importation figures.
Market participants will closely monitor these data points for indications of future economic trends.
