Market Wrap: NGX Index Declines as Stockholders Lose N207bn

The Nigerian Exchange (NGX) All-Share Index slid, and equities investors or stockholders lost more than N207 billion week on week as inflation concerns stoked selling rallies in the trading platform.

The stock market saw notable volatility, with widespread sell-offs across the financial services sector driving the benchmark All-Share Index (ASI) lower. The index declined by 0.32% on a week-on-week basis, settling at 104,233.81 points, according to data from the Nigerian Exchange cited by stockbrokers.

Stock analysts at Cowry Asset Management Limited said the retreat was largely driven by a wave of sector rotation and profit-taking activity, particularly in weaker counters.

Trading signals, data showed equities investors repositioned ahead of the Easter holidays and absorbed the implications of fresh macroeconomic data. Of particular concern was the March 2025 inflation report, which showed a surprising reversal in the disinflation trend observed in the previous two months.

Headline inflation surged to 24.23%, prompting investors to reassess the macroeconomic outlook and its potential impact on corporate earnings and consumer demand. In tandem with the index decline, the total market capitalisation of listed equities fell by the same margin—0.32%—to N65.49 trillion.

This translated into a market value erosion of approximately N207.1 billion within just four trading sessions, Cowry Asset Limited said, reflecting a clear tug-of-war between bullish and bearish forces, each dominating in two sessions respectively.

As a result, the year-to-date return of the market moderated to 1.27%, highlighting increasingly fragile investor sentiment amidst negative market internals. The onset of the earnings season added a new dynamic to the market narrative, stockbrokers explained.

Several corporates began releasing their audited financial statements for the full year 2024—Access Holdings Plc among them—while others unveiled their Q1 2025 performance scorecards. Positively, stockbrokers noted that dividend announcements remained largely robust, even as many companies disclosed their closed periods and schedules for annual general meetings.

Transactions detailed revealed that market breadth leaned decisively bearish, with the sentiment gauge dipping to 0.71x.

Stock market analyst said this was evidenced by 44 declining stocks outpacing 31 gainers over the course of the week. Consequently, trading activity remained subdued, underpinned by weak volumes and persistent sell-side pressure.

Weekly trading volume plummeted by 27.17% to 1.52 billion units, while the total transaction value declined by 18.81% to N43.01 billion. Similarly, the number of deals executed over the week dropped by 20.83% to 51,156. A glance at sectoral performance reveals a mixed landscape.

Of the tracked indices, two sectors advanced, two declined, and two remained largely unchanged due to subdued investor activity. The banking and insurance indices were the worst performers, shedding 5.43% and 2.34%, respectively. Losses in bellwether banking names—GTCO, Zenith Bank, International Energy Insurance, Mutual Benefits Assurance, and UBA— contributed significantly to this underperformance.

Conversely, the Consumer Goods and Oil and Gas indices posted respective gains of 2.40% and 0.20%, buoyed by positive momentum in Nigerian Breweries, Livestock Feeds, Unilever, Oando, and Eterna.

Meanwhile, the Industrial and NGX Commodities indices remained largely dormant, as investors adopted a wait-and-see approach in anticipation of further catalysts—most notably, the forthcoming unaudited Q1 2025 earnings results.

Top performers include Abbey Mortgage Bank, which led the pack with a 46.2% gain, followed by notable advances in Nigerian Breweries (12.1%), ABC Transport (12.7%), Livestock Feeds (11.2%), and Unilever (9.7%).

On the flip side, the laggards included GTCO (-13.2%), Zenith Bank (-11.9%), DAAR Communications (-11.1%), Caverton Offshore Support (-10.6%), and RT Briscoe (-10.4%). The outlook for the local bourse leans cautiously optimistic, Cowry Asset Limited said.

“As the dividend season progresses and more companies unveil their Q1 earnings scorecards, we anticipate renewed investor interest, potentially fueling a short-term rally”, the investment firm said. However, global market developments and local macroeconomic signals will continue to shape investor sentiment and market direction.

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