The Nigerian Exchange experienced a marginal downturn on Thursday, March 20, 2025, as the All-Share Index dipped by 0.05%, bringing the total market capitalization down to N65.8 trillion. This slight decline signaled a weakening of investor confidence in the equities market. Trading activity also saw a significant pullback, with the volume of shares traded plummeting by 77% compared to the previous day. The total value of shares traded, also known as turnover, declined by 50%, and the number of deals executed fell by 15%. This slowdown in market activity suggested a more cautious approach from investors. The day’s trading painted a mixed picture, with 14 stocks advancing while 28 declined, indicating sectoral variations in performance.
Computer Warehouse Group led the gainers, posting a substantial 9.64% increase in its share price, closing at N9.10 per share. Veritas Kapital Assurance followed with an 8.41% gain, reaching N1.16 per share. Deap Capital Management & Trust and Wapic Insurance also recorded notable gains, rising by 7.61% and 4.26% respectively. These gains, while positive, were insufficient to offset the broader market decline. On the other side of the spectrum, Livestock Feeds suffered the largest loss, shedding 9.57% to close at N7.65 per share. Royal Exchange and Custodian & Allied also experienced significant drops, declining by 8.24% and 6.98% respectively. UPDC, Chams Plc, and Ellah Lakes Plc rounded out the list of top losers, highlighting the day’s volatile trading environment.
Trading volume was concentrated in a few key stocks, with Fidelity Bank leading the pack with 40 million shares traded. Veritas Kapital Assurance followed closely with 37.2 million shares, likely fueled by its strong price performance. Nigerian Breweries and Zenith Bank, consistently active stocks, also saw significant trading activity, exchanging 27 million and 22.9 million shares respectively. This concentration of volume in a handful of equities suggests that investor interest was focused on specific sectors or companies.
A review of sectoral indices provided further insight into the market’s performance. The Top 30 Index, representing the largest and most liquid companies, experienced a minor dip of 0.02%. While recording a one-week decline of 1.16%, it maintained a positive year-to-date gain of 2.04%. The Consumer Goods Index showed resilience, appreciating by 0.39% for the day, despite a weekly decline of 1.01%. This sector held a positive year-to-date performance of 4.53%. The Insurance Index presented a more challenging picture, gaining 0.13% for the day but recording both weekly and year-to-date declines. The Main Board Index mirrored the broader market trend, edging up slightly but suffering a weekly decline while maintaining a positive year-to-date performance.
The Industrial and Oil & Gas indices remained unchanged for the day, indicating a lack of significant price movement within these sectors. However, both indices reflected weekly and year-to-date declines, suggesting underlying challenges. Specifically, the Oil & Gas sector exhibited a notable year-to-date loss of 8.27%, which could reflect various factors, including global oil price fluctuations, production challenges, or regulatory uncertainties. The mixed performance across sectors underscores the complexities of the Nigerian equities market and the diverse factors influencing investor sentiment.
The Thursday decline followed a negative trend observed on Wednesday, where the Nigerian Exchange shed N289 billion in market value. This continued bearish sentiment, extending for three consecutive trading sessions, suggests a potential shift in investor outlook. Several factors could contribute to this trend, including macroeconomic conditions, global market sentiment, and company-specific news or events. Further analysis is needed to fully understand the underlying drivers of this extended period of market decline and to assess the potential implications for future trading sessions. The observed volatility highlights the dynamic nature of the Nigerian equities market and the importance of careful monitoring and informed decision-making for investors.
