Equity Market Weekly Summary: Mixed Performance, Bearish Trends

The Nigerian equity market experienced a mixed performance throughout the week, characterized by fluctuating investor sentiment and bearish indicators.

The week began on a positive note, with investors gaining NGN 10.24 billion at the end of the trading session. The market capitalization increased to NGN 63.645 trillion from the previous week’s NGN 62.851 trillion.

On Tuesday January 21, 2025, the positive momentum continued, with the market closing with a gain of NGN 471.37 billion. The All-Share Index (ASI) appreciated, contributing to the overall positive sentiment in the market.

On Wednesday, January 22, 2025, the bears returned to the market, resulting in a loss of NGN 185.36 billion for investors. This marked a shift in sentiment as the market experienced a decline in trading activity.

On Thursday, January 23, 2025, the bearish trend persisted, with investors losing NGN 289.85 billion by the end of the trading session. The decline in turnover and the number of deals contributed to the negative performance.

At the end of the week the market rebounded from the previous losses, closing the week with a gain of NGN 497.68 billion. The ASI increased by 810.10 points (0.79%) to close at 103,598.30, representing a 1-week gain of 1.22%, a 4-week gain of 1.38%, and a year-to-date gain of 0.65%.

Throughout the week, a total turnover of 3.132 billion shares worth NGN 76.552 billion in 61,456 deals was traded by investors on the floor of the Exchange. This was in contrast to the previous week’s 2.252 billion shares valued at NGN 58.831 billion in 63,657 deals.

The Financial Services Industry led the activity chart with 2.336 billion shares valued at NGN 33.014 billion traded in 27,100 deals, contributing 74.59% and 43.13% to the total equity turnover volume and value, respectively. The services Industry followed with 284.988 million shares worth NGN 807.646 million in 4,638 deals. The Consumer Goods Industry recorded a turnover of 139.010 million shares worth NGN 5.704 billion in 6,469 deals.

SCOA Nigeria Plc recorded the biggest share price increase, gaining 59.68%, followed by UPDC Plc with a 19.05% increase, and Coronation Insurance Plc with a 15.32% increase. On the losing side, Sunu Assurances Nigeria Plc recorded the biggest decline in share prices, shedding 25.11%, followed by Eunisell Interlinked Plc with an 18.95% decline, and John Holt Plc with an 18.47% decline.

The Nigerian Exchange Regulation Limited announced the delisting of two companies, Tourist Company of Nigeria Plc and Union Homes Savings and Loans Plc, from the Daily Official List of the Nigerian Exchange Limited, effective January 31, 2025. This decision followed prolonged periods of non-compliance with post-listing obligations by both companies.

This decision, approved by the Board of NGX regco during its meeting on December 16, 2024, follows prolonged periods of non-compliance with post-listing obligations by both companies.

According to a circular filed on the Nigeria Exchange recently, TCN has remained non-compliant for nine years, while Union Homes have been in breach for eleven years.

It added that despite repeated efforts by NGX regco to engage the companies and assist in resolving their deficiencies, including serving a final delisting notice in July 2024, no progress was made.