By Chukwuma Umeorah
The Nigerian equities market extended its losing streak for the fourth consecutive week, as heightened selling pressure, profit-taking, and macroeconomic concerns dampened investor sentiments. The benchmark Nigerian Exchange All-Share Index (NGX ASI) declined by 0.94 per cent to close at 104,962.96 points for the week ended March 21, 2025. This downturn resulted in a N532.17 billion wiped off from market capitalisation, bringing the total value of listed equities to N65.82 trillion.
Market analysts had anticipated a mixed performance with some degree of correction during the week. However, the persistent sell-offs and weak investor confidence led to a largely negative outing, with the market recording four days of losses against a single day of gains. This trend defied expectations that bargain hunters would drive a recovery.
Despite the continued decline, trading activity remained relatively robust, as investors sought to rebalance portfolios and take advantage of bargain opportunities. A total of 2.90 billion shares worth N48.06 billion exchanged hands across 57,044 deals, reflecting a decrease from the prior week’s turnover of 3.28 billion shares valued at N63.52 billion.
Market performance was predominantly negative, with losses recorded across five of the six key sectoral indices. The Nigerian Exchange Industrial Goods Index (NGX Industrial) suffered the steepest decline, falling by 3.39 per cent due to sell-offs in BUA Cement Plc, UPDC Real Estate Investment Trust (UPDCREIT) and Cutix Plc. The banking sector also came under pressure, as the Nigerian Exchange Banking Index (NGX Banking) dropped by 2.55 per cent, weighed down by losses in First Bank Holdings Plc, FCMB Group Plc, Access Holdings Plc (AccessCorp), and Jaiz Bank Plc. Similarly, the Nigerian Exchange Insurance Index (NGX Insurance) recorded a 2.87 per cent decline, dragged lower by Universal Insurance Plc and Sovereign Trust Insurance Plc.
The bearish sentiment extended to the oil and gas sector, where the Nigerian Exchange Oil and Gas Index (NGX Oil & Gas) fell by 1.08 per cent, while the Nigerian Exchange Commodity Index (NGX Commodity) dipped by 0.45 per cent. The only exception was the Nigerian Exchange Consumer Goods Index (NGX Consumer Goods), which posted a marginal gain of 0.06 per cent, supported by positive movements in Neimeth International Pharmaceuticals Plc, Northern Nigeria Flour Mills Plc (NNFM), NASCON Allied Industries Plc, and Dangote Sugar Refinery Plc.
Among individual stock performances, Neimeth International Pharmaceuticals Plc emerged as the week’s best-performing stock, surging by 20.5 per cent to close at N3.00 per share. Other notable gainers included Linkage Assurance Plc, which rose by 13.5 per cent, Northern Nigeria Flour Mills Plc (NNFM) with a 10.0 per cent increase, Academy Press Plc up by 9.9 per cent, and Mutual Benefits Assurance Plc gaining 9.8 per cent. On the flip side, ETranzact International Plc recorded the most significant decline, plunging by 26.2 per cent to N4.80 per share. Livestock Feeds Plc followed closely, shedding 17.5 per cent, while Red Star Express Plc dropped 16.9 per cent. Universal Insurance Plc and Caverton Offshore Support Group Plc also faced steep losses, declining by 13.3 per cent and 13.0 per cent, respectively.
Cowry Research observed that the equities market remained under pressure amid ongoing portfolio adjustments and cautious trading patterns. They noted that while corporate earnings reports continue to influence stock prices, broader macroeconomic uncertainties were keeping investors on edge, however, “the direction of the market in the near term will likely be influenced by the performance of global financial markets, monetary policy decisions by the Central Bank of Nigeria (CBN), and investor sentiment surrounding Nigeria’s economic outlook.” They added that the prevailing negative sentiment suggests that further corrections may be on the horizon, although investors seeking long-term value may find opportunities in fundamentally strong, dividend-paying stocks.