NGX Declines As Investors Lose N1.45 Trillion

The Nigerian Exchange market (NGX) witnessed its market value fall to N62.9 trillion, as investors lost N1.45 trillion in response to rising inflation. According to the National Bureau of Statistics, the consumer price index reached 24.8% in December.

The NGX benchmark index fell by 2.94% week over week, finishing at 102,353.68 points. Cowry Asset Limited said that widespread sell-offs contributed to the fall, with the exception of the consumer products industry.

Investor sentiment throughout the week was mixed, with buying and selling reflecting ongoing economic uncertainty. Trading volumes fell sharply by 41.4%, totaling 2.25 billion units, while traded value dropped by 18.1% to N58.83 billion across 63,650 trades.

Sectoral performance was weak, with four of the five tracked sectors closing in the red. The consumer goods sector bucked the trend, gaining 1.33% due to strong interest in stocks like NNFM, NEIMETH, DANGSUGAR, and NASCON. In contrast, the industrial and insurance sectors saw the steepest declines, losing 8.2% and 6.23%, respectively. Losses in stocks such as DANCEM, JULIUS BERGER, UNIVINSURE, and SOVRENINS contributed significantly to the downturn.

The oil and gas and banking sectors also experienced declines, with losses of 0.78% and 0.46%, respectively, driven by negative price movements in stocks like ARADEL, MRS, FBNH, and WEMABANK.

Top weekly gainers included NEIMETH (31.4%), SCOA (20.4%), NNFM (19.5%), LIVESTOCK (17.6%), and DANGSUGAR (16.7%). Conversely, the biggest losers were UNIVINSURE (19.2%), ROYALEX (18.3%), REGALINS (17.8%), SOVRENINS (16.7%), and DANGCEM (16.5%).

Cowry Asset Limited noted that while profit-taking drove much of the week’s losses, the pullback might create buying opportunities for discerning investors ahead of the Q4 earnings season. Upcoming economic events, including the Monetary Policy Committee (MPC) meeting, are likely to shape market dynamics in the weeks ahead.