Capital Market
NGX Sees Bearish Decline Amid Active Trading Sessions
The NGX All-Share Index (ASI) ended Tuesday, January 28, 2025, on a negative note, dropping 460.20 points, a decline of 0.44%, to close at 103,958.75.
However, despite this decrease in the daily performance, the index has experienced an overall 1% gain year-to-date (YTD), a 0.8% gain over the past week, and a modest 0.78% increase over the past four weeks. This indicates that, while there was a pullback on the day, the market has generally been on an upward trajectory in recent weeks.
In terms of trading activity, the Nigerian Stock Exchange (NGX) recorded a total of 542,229,692 shares traded in 15,561 deals, representing a market turnover of NGN 13.64 billion. When compared to the previous trading day, Monday, January 27, 2025, the market showed a 5% increase in volume, reflecting a higher number of shares traded. Turnover also rose by 3%, indicating that there was an increase in the overall monetary value of transactions. However, there was a 10% drop in the number of deals, which suggests that, while more shares were traded, fewer transactions occurred, possibly due to larger block trades or fewer investors participating in the market.
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Out of the 127 NGX-listed equities that participated in today’s trading, 30 stocks ended the day in positive territory, while 32 stocks experienced losses. Okomu Oil Palm led the gainers, with a 10% increase in its share price, closing at NGN 488.40 per share. This impressive gain was followed by Eunisell Interlinked, which also saw a 10% rise, and SCOA Nigeria, which closed 10% higher. Skye Shelter Fund rounded out the top four gainers, with a 9.97% increase in its stock price.
On the flip side, the losing stocks were led by MRS Oil Nigeria, which saw a significant 9.95% drop, closing at NGN 162.90 per share. Red Star Express and Learn Africa followed with a 9.9% and 9.82% decline in their share prices, respectively. Daar Communications also experienced a notable loss of 8.33%. These stocks contributed to the overall downward movement of the market, as the number of losers slightly outweighed the gainers
In terms of volume, Access Holdings emerged as the most actively traded stock, with a massive 44 million shares exchanged. This was followed by Sterling Bank, with 42.2 million shares traded, and Zenith Bank, which saw 33.8 million shares change hands. United Bank for Africa (UBA) also saw substantial trading activity, with 29.2 million shares traded.
As for the market indices, the performance was mixed. The NGX Top 30 Index, which tracks the performance of the largest and most liquid stocks, declined by 0.42%. Despite the decline on Tuesday, it recorded a 1% gain over the past week and a 1.3% increase in its YTD performance. The NGX Oil & Gas Index, however, posted a positive result, increasing by 1.06%, despite a slight 0.32% decline over the past week and a 2.4% decline YTD. The NGX Main Board Index, which includes the most established and reputable companies listed on the NGX, posted a 0.27% increase, with a 1.22% rise over the last week and a 1.69% YTD gain.
On the other hand, the NGX Insurance Index recorded a very modest decline of 0.03%, with a significant 5.17% drop over the past week, though it still maintained a 0.81% gain YTD. Similarly, the NGX Consumer Goods Index saw a minor decrease of 0.26% on the day, but it showed a 1.09% increase over the past week and a 1.92% gain YTD. The NGX Pension Index, which tracks pension-related stocks, experienced a slight decline of 0.76%, but it has managed a 2.56% gain over the past week and a strong 5.43% increase YTD, showing significant growth over the first month of the year.
These varied performances across the indices suggest that while the broader market faced some downward pressure, certain sectors and stocks managed to outperform others. The market as a whole displayed resilience, with particular sectors such as Oil & Gas and Main Board stocks showing positive momentum.
The Nigerian Stock Exchange continues to demonstrate its resilience despite the fluctuations in global markets and economic uncertainties. The growth in market capitalization, which currently stands at NGN 64.2 trillion, reflects the market’s underlying strength and the investment opportunities it offers. While today’s decline in the ASI is noteworthy, the general trend of market growth over the past weeks suggests that investors are looking at the longer-term picture, where there is optimism about economic recovery and corporate performance.
Overall, the NGX trading summary for January 28, 2025, underscores the dynamic nature of the market, with significant changes in trading volumes, sector performance, and individual stock movements. While challenges exist, the market continues to show potential for growth and opportunities for both institutional and retail investors.