Nigerian Equities Market Continues Downward Trend, Investors Lose N532bn in 4th Consecutive Week

The Nigerian equities market has faced a fourth consecutive week of losses, with heightened selling pressure and macroeconomic concerns causing investor sentiment to weaken. The Nigerian Exchange All-Share Index (NGX ASI) dropped by 0.94%, closing at 104,962.96 points for the week ending March 21, 2025. As a result, the market capitalization shrank by N532.17 billion, bringing the total value of listed equities to N65.82 trillion.

Despite expectations of a potential market correction and some bargain hunting, the week remained mostly negative, with four days of losses and only one day of gains. The market saw a decline in trading volume, with a total of 2.90 billion shares worth N48.06 billion exchanged across 57,044 deals, a decrease from the previous week. Analysts had anticipated some recovery, but persistent sell-offs kept investor confidence low.

Sector-wise, five of the six key indices saw declines. The Industrial Goods Index fell by 3.39% due to losses in major stocks like BUA Cement, while the Banking and Insurance indices also dropped, influenced by poor performances from key banking stocks like First Bank Holdings and FCMB Group. The Oil & Gas sector saw a slight dip, and the Commodity Index fell by 0.45%. The only exception was the Consumer Goods Index, which posted a small gain of 0.06%.

Individual stock performances were mixed, with Neimeth International Pharmaceuticals emerging as the best performer, rising 20.5%. However, stocks like ETranzact International and Livestock Feeds saw steep losses, with declines of 26.2% and 17.5%, respectively. Analysts suggest that ongoing portfolio adjustments and macroeconomic uncertainties continue to weigh on the market, and further corrections are expected. They also highlighted the role of global financial markets and Nigeria’s economic outlook in influencing the market’s near-term direction.

source: the sun