The Nigerian Stock Exchange (NGX) experienced a significant downturn on Tuesday, with investors losing N166 billion in market value following the announcement of a decline in Nigeria’s headline inflation to 24.48 per cent in January 2025. Despite the drop, the market maintained positive weekly and year-to-date gains, reflecting mixed sentiments among investors.
The Nigerian Stock Exchange (NGX) recorded a notable decline on Tuesday as investors reacted to the latest inflation figures released by the National Bureau of Statistics (NBS). The headline inflation rate dropped to 24.48 per cent in January 2025, down from 34.80 per cent in December 2024, following the rebasing of the Consumer Price Index. This development, however, failed to buoy investor confidence, leading to a N166 billion loss in market capitalisation.
At the close of trading, the NGX All-Share Index fell by 266.76 points, representing a 0.25 per cent decline to settle at 107,670.98. Despite the dip, the market posted a one-week gain of 1.03 per cent, a four-week gain of 4.4 per cent, and a year-to-date gain of 4.61 per cent. The total market capitalisation of the Nigerian Stock Exchange now stands at N67.2 trillion.
Trading activity also saw a decline, with 408,719,063 shares traded in 14,174 deals, amounting to a turnover of N11.26 billion. Compared to the previous trading day, this reflects a 20 per cent decline in trading volume, a 12 per cent decrease in turnover, and a 17 per cent drop in the number of deals executed.
A total of 125 NGX-listed equities participated in trading, with 16 gainers and 40 losers. Consolidated Hallmark Holdings led the gainers with a remarkable 9.76 per cent increase in share price, closing at N3.71 per share. Sunu Assurances Nigeria followed with a 9.58 per cent rise to N6.52, while Neimeth International Pharmaceuticals recorded an 8.77 per cent gain, ending at N3.35 per share. Cornerstone Insurance Company also posted a 7.03 per cent gain, closing at N3.35.
On the losing side, The Initiates saw its share price fall by 9.89 per cent, closing at N4.01. Union Dicon Salt followed with a 9.82 per cent drop to N7.35, while UPDC fell by 9.09 per cent, closing at N3.10. Cadbury Nigeria also recorded a significant loss, dropping 9.06 per cent to close at N29.10.
In terms of trading volume, Access Holdings recorded the highest volume with 54.8 million shares traded, followed by United Bank for Africa with 31.4 million shares. Guinness Nigeria and Fidelity Bank also featured as top volume leaders, with 30.3 million and 19.9 million shares traded, respectively.
The market indices reflected the broader market trend, with the Top 30 Index shedding 0.24 per cent, while the Insurance Index bucked the trend with a 2.63 per cent gain. Other indices like the NGX Main Board, Industrial, Oil & Gas, and Consumer Goods Index also recorded declines, with the Oil & Gas Index seeing the sharpest drop at -0.24 per cent.
This downturn follows a negative start to the week, as reported by The PUNCH, with the Nigerian equity market shedding N72 billion in market capitalisation at the close of trading on Monday.
The Nigerian Stock Exchange’s decline on Tuesday highlights the mixed sentiments among investors despite a drop in inflation figures. While the market maintains positive weekly and year-to-date gains, the loss of N166 billion underscores the need for sustained economic reforms to bolster investor confidence. As the NGX navigates these challenges, stakeholders will closely monitor developments to gauge the market’s resilience in the coming weeks.
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