The Nigerian stock market, tracked by the All-Share Index, concluded the trading week ending January 17, 2025, with a notable downturn, amid losses in the industrial goods and insurance sectors.
All-Share shed 3,097.38 points, closing at 102,353.68, marking a 2.94% decline from the previous week’s close of 105,451.06, thereby interrupting a six-week streak of gains.
Market activity also showed a significant decline, as weekly trading volume fell by 38% to 2.2 billion shares, compared to 3.6 billion shares in the prior week.
Furthermore, market capitalization retreated to N62.8 trillion, down from N64.3 trillion the previous week.
In terms of market breadth, thirty-three (33) equities recorded price increases, a decrease from fifty-one (51) equities the prior week.
Conversely, fifty-seven (57) equities saw price declines, which is an increase from thirty-nine (39) in the previous week.
Market performance
The Nigerian stock market faced a notable decline over the past week, with market capitalization falling sharply from N64.3 trillion to N62.8 trillion.
The All-Share Index began the week on a downward trend, with losses intensifying on Tuesday and Wednesday, culminating in a decline to the 102,000 zone.
However, despite small gains on Thursday and Friday, the index ultimately ended the week lower.
Key highlights of the week
- The NGX Premium Index plunged by 7.05%, primarily driven down by a 16% drop in DANGCEM. Additional declines of under 3% in MTN, FBNH, and ACCESSCORP compounded the losses.
- The NGX 30 Index fell by 3.11%, reflecting widespread negative sentiment, while the NGX Main Board Index decreased by 0.75%.
Sectoral performance
- NGX Industrial Goods Index took a hit, crashing by 8.20%, with DANGCEM leading the decline at 16%, followed by BETAGLASS down 5%, and CUTIX at 1.9%.
- The NGX Insurance Index fell by 6.23%, impacted by significant drops of over 15% in four insurance stocks.
- NGX Oil and Gas Index and NGX Banking Index experienced declines of 0.75% and 0.46%, respectively.
- On a positive note, the NGX Consumer Goods Index rose by 1.33%, supported by a 16.7% increase in DANGSUGAR and a 7.6% gain in GUINNESS.
Top gainers
Leading the pack of gainers, NEIMETH INTERNATIONAL PHARMACEUTICALS PLC surged by 31.42%, followed by SCOA NIG. PLC., which rose by 20.39%. Other notable gainers included:
- N NIG. FLOUR MILLS PLC.: up 19.54% to N54.45
- LIVESTOCK FEEDS PLC.: up 17.62% to N5.94
- DANGOTE SUGAR REFINERY PLC: up 16.67% to N38.50
- NASCON ALLIED INDUSTRIES PLC: up 15.85% to N37.65
- CAP PLC: up 15.79% to N44.00
- OANDO PLC: up 14.88% to N71.80
- UNIVERSITY PRESS PLC.: up 13.48% to N5.05
- UACN PLC: up 12.50% to N36.00
Top losers
On the losing side, UNIVERSAL INSURANCE PLC. led the decline, falling by 19.23%, followed by ROYAL EXCHANGE PLC. and REGENCY ASSURANCE PLC, which fell by 18.35% and 17.78%, respectively. Other significant decliners included:
- SOVEREIGN TRUST INSURANCE PLC: down 16.67% to N1.10
- DANGOTE CEMENT PLC: down 16.46% to N400.00
- DAAR COMMUNICATIONS PLC: down 15.91% to N0.74
- CORNERSTONE INSURANCE PLC: down 15.91% to N2.22
- LEARN AFRICA PLC: down 13.82% to N4.99
- ASSOCIATED BUS COMPANY PLC: down 13.01% to N1.07
- TANTALIZERS PLC: down 12.69% to N2.27
Corporate announcements
Several corporate announcements made waves this week:
- Airtel Africa PLC notified a transaction in its own shares.
- Custodian Investment PLC appointed a new Chief Operating Officer.
- Eterna PLC announced the resignation and appointment of a new Managing Director/CEO.
- Universal Insurance PLC appointed a new Managing Director/Chief Executive Officer.
- MTN Nigeria Communications PLC raised N42.20 billion through a commercial paper issuance.
- John Holt PLC released its audited financial statement for the period ended September 30, 2024.
Market outlook
- After six weeks of consecutive gains, the index is currently experiencing a retracement, dropping from the 105,000 level to around 102,000. Despite this pullback, the index remains on a long-term upward trend.
- Positive reactions are expected from the forthcoming Q4 earnings reports for large and mid-cap stocks, set to be released in late January and early February. This could provide the momentum needed for the index to challenge the 105,000-barrier once again.
