The Nigerian equity market experienced a downturn in the week under review, shedding N1.45 trillion in market capitalization, a decline of 2.26%. The All-Share Index mirrored this negative trend, falling by 2.94% to close at 102,353.68 points. Trading activity also contracted, with 2.252 billion shares worth N58.83 billion exchanged in 63,657 deals. This represents a significant decrease in both volume and value compared to the previous week, which saw 4.698 billion shares worth N85.04 billion traded in 72,562 deals. The downward pressure on the market suggests a shift in investor sentiment, possibly influenced by both domestic and global economic factors.
Sectoral performance varied. The Financial Services Industry dominated trading activity, accounting for 60.86% of the total volume and 37.86% of the total value, with 1.371 billion shares worth N22.27 billion traded. The Consumer Goods Industry followed with 253.54 million shares worth N15.24 billion, indicating continued interest in this sector despite the overall market decline. The Services Industry trailed behind with 193.42 million shares worth N931.8 million. The concentration of trading within the Financial Services sector underscores its significant influence on the overall market performance.
The most actively traded stocks were Universal Insurance Plc, Guaranty Trust Holding Company Plc, and AIICO Insurance Plc. Combined, these three companies accounted for 20.79% of the total trading volume and 15.31% of the total value, with 468.32 million shares worth N9.01 billion exchanged. The dominance of insurance companies among the most traded stocks suggests potential investor interest in the sector, but also highlights the volatility experienced by Universal Insurance Plc, which experienced a significant price drop during the week.
Despite the broader market’s negative performance, some indices registered marginal gains. The MERI Value, Consumer Goods, Growth, and Sovereign Bond indices saw increases of 0.70%, 1.33%, 0.15%, and 0.04%, respectively. This divergence in performance indicates that while the overall market sentiment was bearish, specific segments demonstrated resilience and attracted investor interest. This could be attributed to sector-specific factors or individual company performance, highlighting the importance of diversified investment strategies.
Price movements among individual stocks were mixed. A total of 33 stocks appreciated in price, down from 51 in the previous week, while 57 equities depreciated, up from 39 the week prior. 62 equities remained unchanged, mirroring the previous week’s figure. The decrease in the number of gainers and the increase in the number of losers further underscores the overall negative sentiment in the market. This volatility in individual stock performance reinforces the dynamic nature of the equity market and the need for careful analysis before investment decisions.
Neimeth International Pharmaceuticals Plc emerged as the week’s top gainer, with an impressive 31.42% surge in share price, closing at N3.43. Other notable gainers included 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%). Conversely, Universal Insurance Plc led the decliners, plummeting by 19.23% to close at N0.63. Significant losses were also recorded by Royal Exchange Plc (-18.35%), Regency Assurance Plc (-17.78%), Sovereign Trust Insurance Plc (-16.67%), and Dangote Cement Plc (-16.46%). The wide range in price fluctuations indicates the inherent volatility within the market, influenced by company-specific news, sector performance, and overall market sentiment.
