The Nigerian equity market experienced significant losses last week, dropping by 2.94% to close at 102,353.68 points. Market capitalization also declined by 2.26% to N62.85tn, marking an N1.45tn reduction in value. Trading activity decreased, as 2.252 billion shares worth N58.83bn were exchanged in 63,657 deals, compared to the previous week’s 4.698 billion shares valued at N85.04bn across 72,562 deals. The Financial Services Industry dominated trading with 1.371 billion shares valued at N22.27bn, making up 60.86% of the total volume.
Despite the overall market downturn, select indices, including MERI Value, Consumer Goods, Growth, and Sovereign Bonds, posted marginal gains. However, the number of gainers reduced to 33 from the previous week’s 51, while 57 stocks recorded losses, an increase from 39 in the prior week. Notable gainers included Neimeth International Pharmaceuticals Plc, which surged by 31.42%, and S.C.O.A Nigeria Plc, which rose by 20.39%. Conversely, Universal Insurance Plc led the losers with a 19.23% decline, followed by Royal Exchange Plc, which dropped by 18.35%.
Globally, stock market sentiment improved due to China’s better-than-expected GDP growth in Q4 2024 and easing US core inflation, increasing optimism for potential Federal Reserve rate cuts. The MSCI World Equity Index posted a 2% weekly gain, while in the US, December’s inflation report showed a 0.4% increase, aligning with expectations. Despite these global developments, the Nigerian stock market remained under pressure, reflecting local economic challenges and investor sentiment.