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Investors on the Nigerian Stock Market Lost N674bn After Four Days of Trading Last Week

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Investors in Nigeria’s stock market experienced a rough week, losing N674bn in just four days of trading on the Nigerian Exchange Limited.

This happened as the Federal Government of Nigeria declared Friday and Monday as public holidays to celebrate the Easter season.

The All-Share Index and the market capitalization also suffered a decline of 2.28% during the week, shedding 1238.21 base points and N674bn respectively.

Starting the week at 54,232.34 points, the All-Share Index closed at 52,994.13 points, while the market capitalization started at N29.543tn but closed at N28.869tn.

The NGX Insurance was the only index that appreciated during the week, rising by 2.19%. On the other hand, the NGX ASeM and NGX Growth indices remained flat, while all other indices finished lower.

Investors traded a total turnover of 1.054bn shares worth N10.050bn in 16,155 deals on the floor of the exchange last week, which is a significant decline from the previous week’s total of 2.071bn shares valued at N17.562bn that exchanged hands in 17,917 deals.

The financial services industry led the activity chart by volume, with 630.378 million shares valued at N5.438bn traded in 7,705 deals, contributing 59.83% and 54.11% to the total equity turnover volume and value, respectively.

The conglomerates industry followed with 248.074 million shares worth N394.370 million traded in 812 deals, while the oil and gas industry recorded a turnover of 70.921 million shares worth N1.345bn in 1,452 deals.

Transnational Corporation Plc, United Bank for Africa Plc, and Fidelity Bank Plc were the top three stocks traded by volume, accounting for 498.527 million shares worth N2.118bn in 1,862 deals. This represented 47.32% and 21.07% of the total equity turnover volume and value, respectively.

The equity market saw 16 gainers, 37 losers, and 103 equities remaining unchanged. Nigerian Aviation Handling Company Plc recorded the highest gain, rising by 20.99% to close at N9.80, followed by Axa Mansard Insurance Plc, which gained 15.79% to close at N2.20.

CWG Plc recorded a 14.94% gain to end the week’s trading at N1.00. Other gainers include Linkage Assurance, LASACO Assurance Plc, and Mutual Benefits Assurance Plc, gaining 11.63%, 9.09%, and 6.25% respectively.

On the flip side, Eterna Oil led the losers, with a 19.12% depreciation in its share value to close at N5.50, while Multiverse Mining and Exploration Plc followed with an 18.83% loss in its share value to close at N2.63.

Associated Bus Company Plc lost 16.22%, Royal Exchange Plc lost 15.38%, UAC N Plc lost 10.99%, and Airtel Africa Plc lost 10.00% in its share value per unit to close at N1331.10.

Overall, it was not a great week for investors on the Nigerian Exchange Limited, with the stock market experiencing a significant decline in just four days of trading. Despite the losses, some stocks recorded gains, giving investors hope that the market could turn around in the coming weeks.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Nigerian Exchange Limited

Nigerian Equity Market Sees N92.32bn Loss Amid Declines in Key Stocks

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The Nigerian equity market experienced a significant downturn on Tuesday, losing N92.32 billion in market value.

This decline was largely driven by drops in the share prices of key companies, including National Salt Company, Thomas Wyatt Nigeria, and May and Baker Nigeria.

The market capitalisation and the All-Share Index (ASI) decreased by 0.16 per cent, closing at N56.36 trillion and 99,630.51 points, respectively. This downturn affected the year-to-date return, which fell from 33.5 per cent to 33.24 per cent.

Despite the overall market decline, market breadth remained positive, with 29 stocks advancing against 19 that declined, across 8,064 deals. This indicates a mixed sentiment among investors, with some stocks seeing substantial gains.

Key Gainers and Losers

Total Nigeria led the list of gainers with a 9.98 percent increase to close at N388.90. Presco followed closely with a 9.97 percent rise to N323.30, and UPDC leveraged a 9.92 percent gain to end the day at N1.33.

Conversely, National Salt Company recorded a significant drop of 9.91 percent to close at N36.80. Thomas Wyatt Nigeria saw a 9.66 percent decrease to N1.59, and May and Baker Nigeria fell by 7.13 percent to close at N5.60.

Trading Volume Leaders

In terms of trading volume, Fidelity Bank led the market with 293.18 million shares exchanged in 340 deals. Nigerian Breweries followed, trading 101.584 million shares in 145 deals, reflecting strong investor interest in these companies.

Market Dynamics

The losses come on the heels of a robust performance on Monday, where the equity market gained N323 billion, buoyed by appreciations in stocks like Flour Mills Nigeria, Total Nigeria, and Access Holding.

The contrasting performance over two consecutive days underscores the volatility in the market.

Investor Sentiment

The decline in the equity market highlights the fluctuating investor sentiment influenced by various macroeconomic factors and corporate performance. Despite the losses, the positive market breadth indicates underlying resilience, as a larger number of stocks posted gains than losses.

Economic Context

The broader economic environment continues to pose challenges, with inflationary pressures and currency devaluation impacting investor confidence. However, strategic moves by companies and expectations of economic reforms provide some optimism for market recovery.

Outlook

Analysts suggest that the market could see further fluctuations in the short term, with investor focus likely to remain on corporate earnings reports and economic policy developments. The ability of companies to navigate the current economic landscape will be crucial in determining future market performance.

As the market adjusts to these dynamics, stakeholders remain hopeful that strategic investments and economic reforms will foster a more stable and growth-oriented environment for the Nigerian equity market.

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Nigerian Exchange Limited

Flour Mills Nigeria, Others Bolster Nigerian Equity by N323 Billion

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Flour Mills Nigeria, alongside other key players in the Nigerian equity market, propelled the market to a significant gain of N323 billion in market capitalization on Monday.

The bullish momentum saw the market capitalization and the All Share index rising by 0.58 percent to settle at N56.52 trillion and 99,793.71 points, respectively.

This surge represents a notable increase from the previous trading session and contributed to a year-to-date return of 33.5 percent, up from 32.8 percent.

Market participants witnessed heightened activity levels as both volume and value exchanged surged by 148.3 percent and 83.6 percent, reaching 963.5 million units and N13.5 billion, respectively.

The banking and oil & gas sectors emerged as the leading gainers, with respective increases of 2.7 percent and 3.1 percent.

This sectoral performance further fueled investor optimism and contributed to the overall market rally.

Flour Mills Nigeria stole the spotlight among gainers with a remarkable 10 percent appreciation, closing at N41.80 per share.

Similarly, Total Nigeria and Access Holding recorded significant gains of 9.88 percent and 9.86 percent, closing at N353.60 and N18.95, respectively.

However, not all stocks shared in the bullish sentiment, as E-Tranzact International, Daar Communications, and Champion Breweries emerged as the top losers, shedding 9.90 percent, 9.52 percent, and 6.67 percent, respectively.

Fidelity Bank emerged as the most traded security by value, with N6.03 billion worth of shares exchanged in 417 deals.

On the other hand, Abbey Mortgage Bank led the volume chart with 2,919 units traded in 12 deals.

The significant surge in market capitalization and the robust trading activity reflect growing investor confidence and optimism in the Nigerian equity market.

Despite recent fluctuations, the market continues to attract interest from both domestic and foreign investors, driven by promising economic indicators and corporate performance.

Looking ahead, analysts anticipate continued market resilience, with expectations of increased capital raising operations and sustained investor appetite for high-yielding assets.

However, uncertainties surrounding interest rate movements and global economic dynamics remain key factors influencing market sentiment in the near term.

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Nigerian Exchange Limited

Nigerian Stocks Gain N15.25 Trillion Despite Rate Hike Concerns

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Nigerian stocks have surged by N15.25 trillion in the first five months of 2024, despite looming concerns over rapid interest rate hikes.

This surge which has taken the market by storm reflects a significant milestone in the country’s financial landscape.

Driving this unprecedented rally are several key players in the market, including powerhouse companies like Geregu Power, Dangote Cement, BUA Cement, BUA Foods, and Julius Berger, among others.

These companies gained with Geregu Power leading the charge with a 150.6 percent surge, followed closely by Dangote Cement at 105.3 percent and BUA Cement at 72.07 percent.

This surge in stock performance has propelled Nigeria’s stock market to new heights, outperforming its African counterparts and demonstrating a strong investor sentiment towards the country’s economic prospects.

The overall market capitalization soared to N56.172 trillion by the close of May 2024, marking a remarkable 37.28 percent increase from the beginning of the year.

Despite concerns surrounding aggressive interest rate hikes, Nigerian stocks have continued to defy expectations, with retail and institutional investors driving the rally.

Nigerian pension funds, in particular, have significantly increased their holdings in the equity market, signaling confidence in the country’s economic trajectory.

However, recent market performance data indicates a potential slowdown, with gains tapering off in April and May. While the market remains buoyant, investors are beginning to exercise caution in light of evolving economic conditions.

Experts attribute the initial surge to investor sentiment, bolstered by the emergence of Bola Tinubu as Nigeria’s President, coupled with stringent compliance measures implemented by the Exchange.

The Nigerian stock market’s impressive performance comes amidst mixed corporate earnings reports, ongoing reforms in the banking sector, and significant policy shifts in the foreign exchange market, including the removal of fuel subsidies.

Moreover, the recent hike in the Monetary Policy Rate (MPR) to 26.25 percent has led to sentiment trading among investors, seeking alternative investment opportunities to hedge against inflation.

As the Central Bank of Nigeria maintains its focus on achieving price stability, investors remain vigilant amid escalating inflation rates and economic uncertainties.

Despite these challenges, the resilience of Nigerian stocks underscores the market’s potential to weather storms and emerge stronger in the face of adversity.

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