The NASD Over-the-Counter (OTC) Securities Exchange experienced a downturn in week 25, as its securities index dipped by 0.61%, settling at 3,320.91 points compared to 3,341.22 points the previous week. This decline translated to a N20 billion erosion of investor wealth, with market capitalization shrinking from N1.96 trillion to N1.94 trillion. Trading activity also witnessed a decrease, with 2.44 million shares valued at N113.13 million exchanged in 179 deals, contrasting with the prior week’s higher volume of 3 million shares worth N31.85 million transacted in 111 deals. Despite this overall market downturn, certain sectors and individual stocks displayed positive performance, indicating pockets of resilience within the OTC market.
A deeper analysis of sector performance reveals a skewed distribution of trading activity. The consumer goods sector dominated the market, accounting for a substantial 84.41% of the total traded value. This sector saw the exchange of 1.32 million shares worth N95.49 million in 89 deals. Trailing behind was the financial sector, contributing 14.35% to the total value, with 1.01 million shares worth N16.24 million traded in 70 deals. This concentration of trading within the consumer goods sector underscores its significance within the NASD OTC market and highlights the potential influence of consumer spending patterns on overall market performance.
Friesland Campina Wamco Nigeria Plc emerged as the most actively traded security, driving a significant portion of the trading volume. The company accounted for 53.12% of the total volume, with 1.29 million shares worth N90.33 million traded across 74 deals. Despite this high trading activity, the stock experienced a price decline of 2.06%, closing at N69.38 per share, down from N70.84 the previous week. This contrasting performance between trading volume and price movement suggests a potential disconnect between investor interest and the perceived value of the stock.
Despite the prevailing bearish sentiment in the market, several companies bucked the trend, registering price gains during the week. Geo-Fluids Plc led the gainers with a significant 9.87% surge, closing at N4.23 per share, up from N3.85. Air Liquide Plc followed closely with a 9.80% increase, closing at N9.97. Other companies that registered notable price appreciation included AG Mortgage Bank Plc, FirstTrust Mortgage Bank Plc, Food Concepts Plc, Acorn Petroleum Plc, Industrial and General Insurance Plc, UBN Property Plc, and Afriland Properties Plc. These positive performances offer a glimpse into specific sectors or companies that defied the overall market downturn, possibly driven by company-specific developments or investor optimism within particular niches.
Conversely, a number of companies experienced price declines, further contributing to the overall market downturn. Okitipupa Oil Palm Plc led the decliners, suffering a 9.50% drop in its share price, closing at N219.00 from N242.00. Central Securities Clearing System Plc also witnessed a decline, losing 2.78% to close at N29.00 per share. These price declines, coupled with the overall market index decrease, reflect the prevailing negative sentiment and potential concerns about the economic outlook.
Looking beyond the week 25 performance, The PUNCH reported a subsequent rise in the NASD OTC market capitalization to N1.90 trillion by the close of trading on Friday, May 30, 2025, up from N1.87 trillion the previous week. This rebound, albeit modest, suggests a potential recovery in investor confidence and could signal a more positive outlook for the OTC market. However, sustained growth will depend on a variety of factors, including macroeconomic conditions, company performance, and investor sentiment. Furthermore, the dividend announcement by Food Concepts Plc, offering N0.04 per share with a qualification date of June 10, 2025, and trading ex-dividend at N1.61, adds another layer of complexity to analyzing market dynamics and investor behavior.
