The Nigerian Stock Market (NGX) experienced a downturn this week, with the All-Share Index and market capitalization declining by 1.51%. The Index closed at 97,100.31 points, while the market capitalization settled at N55.132 trillion. This decline reflects investor reactions to mixed corporate earnings, dividend announcements, and a slight reduction in inflation.
Despite a modest decrease in Nigeria’s headline inflation rate, which fell to 33.40% in July from 34.19% in June, investor sentiment remained muted. This marks the first drop in inflation since December 2022, but ongoing economic uncertainties continued to weigh on the market.
Market Performance
The NGX All-Share Index ended the week at 97,100.31 points, down from 98,592.12 points the previous week, marking a 1.51% decline. Market capitalization mirrored this trend, falling to N55.132 trillion from N55.933 trillion. The overall market sentiment was bearish, with most indices experiencing declines.
However, some sectors bucked the trend, with NGX Insurance (+0.79%), NGX Consumer Goods (+0.37%), NGX Oil & Gas (+5.25%), NGX Lotus II (+0.42%), and NGX Growth (+6.14%) all recording gains. The NGX Main Board Index led the declines, dropping by 2.00% to close at 4,654.62 points. The NGX Banking Index also saw significant losses, falling 2.28% to 837.67 points, while the NGX 30 Index decreased by 1.19% to 3,598.60 points. The NGX ASeM Index remained unchanged.
Top Gainers
Despite the overall market decline, 39 equities posted gains. R T Briscoe Plc led the gainers with a 33.86% increase, closing at N1.70. TotalEnergies Marketing Nigeria Plc followed with a 19.69% rise to N511.90, while Julius Berger Nigeria Plc gained 18.18% to close at N130.00.
Other notable gainers included:
- Guinea Insurance Plc: up 17.65% to N0.40
- University Press Plc: up 12.39% to N2.45
- Nascon Allied Industries Plc: up 11.59% to N35.15
- Eterna Plc: up 11.11% to N22.00
- Dangote Sugar Refinery Plc: up 10.76% to N40.65
- SFS Real Estate Investment Trust: up 9.96% to N111.50
- Champion Breweries Plc: up 9.75% to N3.04
Top Losers
Conversely, 66 equities recorded declines. Cutix Plc led the losers, dropping 17.50% to N4.95. BUA Cement Plc fell 14.82% to N109.80, and Oando Plc decreased by 11.70% to N35.85.
Other significant losers included:
- Learn Africa Plc: down 10.89% to N3.52
- Chams Holding Company Plc: down 10.22% to N2.02
- Cadbury Nigeria Plc: down 9.95% to N18.10
- Academy Press Plc: down 9.03% to N2.62
- CWG Plc: down 8.73% to N5.75
- Deap Capital Management & Trust Plc: down 8.51% to N0.43
- Japaul Gold & Ventures Plc: down 7.95% to N2.20
Corporate Announcements
Several key corporate announcements were made this week, particularly regarding dividend payments. Bua Cement Plc adjusted its share price after declaring a N2.00 dividend, closing at N126.90 per share following the ex-dividend date. Flour Mills of Nigeria Plc closed at N44.20 after a N1.80 dividend adjustment, while FBN Holdings Plc adjusted to N21.60 following a N0.40 dividend.
Access Holdings Plc extended its Rights Issue by ten days, now closing on August 23, 2024. The Rights Issue involves 17.77 billion ordinary shares at N19.75 per share.
Economic Data
Nigeria’s headline inflation rate decreased to 33.40% in July 2024, down from 34.19% in June, marking the first decline since December 2022. The National Bureau of Statistics reported a month-on-month inflation rate of 2.28% for July, slightly lower than June’s 2.31%. The decrease was primarily driven by a slowdown in the prices of food and non-alcoholic beverages, which contributed 17.30% to the year-on-year inflation.
Outlook
The market is expected to respond to upcoming data releases, including reports from the National Bureau of Statistics on select food prices, AGO and petrol prices, transport prices, and capital importation figures. Investors will closely monitor these data points for insights into future economic trends.
