The Nigerian equity market faced a significant downturn last week, losing ₦1.45 trillion in market capitalization. The All-Share Index (ASI) declined by 2.94%, closing at 102,353.68 points, while market capitalization dropped by 2.26% to settle at ₦62.85 trillion.
Trading Highlights
A total of 2.252 billion shares, valued at ₦58.83 billion, were traded across 63,657 deals. This marked a decline from the previous week’s 4.698 billion shares worth ₦85.04 billion exchanged in 72,562 deals.
The Financial Services Industry led trading activity, contributing 1.371 billion shares valued at ₦22.27 billion, accounting for 60.86% of total volume and 37.86% of total value. The Consumer Goods Industry followed with 253.54 million shares worth ₦15.24 billion, while the Services Industry recorded 193.42 million shares valued at ₦931.8 million.
Among the most traded stocks were Universal Insurance Plc, Guaranty Trust Holding Company Plc, and AIICO Insurance Plc, which collectively accounted for 468.32 million shares worth ₦9.01 billion, representing 20.79% of the total volume and 15.31% of the total value traded.
Gainers and Losers
Despite the overall market downturn, certain indices saw marginal gains, including the MERI Value (0.70%), Consumer Goods (1.33%), Growth (0.15%), and Sovereign Bond (0.04%) indices.
Out of the equities, 33 stocks appreciated in value, a decrease from the 51 gainers recorded in the previous week. On the other hand, 57 stocks declined, higher than the 39 losers from the prior week, while 62 stocks remained unchanged.
Top gainers included Neimeth International Pharmaceuticals Plc, which led with a 31.42% increase, closing at ₦3.43. Other notable gainers were S.C.O.A Nigeria Plc (+20.39%), Nigerian Flour Mills Plc (+19.54%), Livestock Feeds Plc (+17.62%), and Dangote Sugar Refinery Plc (+16.67%).
On the losing side, Universal Insurance Plc recorded the steepest drop, falling 19.23% to close at ₦0.63. Other significant decliners included Royal Exchange Plc (-18.35%), Regency Assurance Plc (-17.78%), Sovereign Trust Insurance Plc (-16.67%), and Dangote Cement Plc, which fell 16.46% to ₦400.00.
Global Market Sentiments
Global equity markets were influenced by positive economic developments. China’s better-than-expected GDP growth for Q4 2024, easing U.S. inflation, and improved prospects for Federal Reserve rate cuts drove the MSCI World Equity Index up by 2% for the week.
In the U.S., the Consumer Price Index rose by 0.4% in December 2024, aligning with forecasts, while the annual inflation rate stood at 2.9%. Core inflation exceeded expectations, signaling potential economic stability.
Market Outlook
As the Nigerian equity market grapples with these losses, investors will closely watch the performance of key sectors and stocks in the coming weeks. Strategic adjustments and improved market conditions could pave the way for recovery in the near term.
