The Nigerian stock market commenced April on a downturn, reversing the previous week’s gains and extending the bearish trend observed throughout March. This decline occurred despite the release of strong 2024 audited financial results and substantial dividend declarations, particularly from the banking sector.
During the shortened three-day trading week, the NGX All-Share Index (ASI) experienced a 0.14 percent week-on-week decrease, closing at 105,511.89 points. Consequently, the market capitalization fell by 0.17 percent to N66.15 trillion, resulting in approximately N109.98 billion in losses for investors.
A significant factor contributing to this decline was the delisting of three companies: Capital Oil Plc, Goldlink Insurance Plc, and Medview Airlines Plc, all due to their failure to meet listing requirements.
Furthermore, EkoCorp Plc received a delisting notice from NGX Regulation (NGX RegCo). “NGX RegCo engaged the entity reflected in Table A (EkoCorp Plc) above with a view to returning the company to its compliance level. When these efforts did not yield results, NGX RegCo sent three months and one month delisting notices to the company on September 5, 2023, and January 2, 2024, respectively,” the NGX Regulation stated. The company now has four months to resolve its compliance deficiencies or face final delisting.
The week’s total turnover reached 1.183 billion shares, valued at N28.87 billion, exchanged across 42,397 deals. This represents a significant decrease compared to the previous week’s 7.521 billion shares, valued at N398.95 billion, traded in 61,312 deals.
The financial services sector dominated trading activity, accounting for 76.60 percent of the total equity turnover volume and 65.56 percent of the total value. “The financial services led the activity chart with 906.590 million shares valued at N18.93bn traded in 22,876 deals,” according to market data. Other notable sectors included consumer goods and services.
Key stocks attracting investor interest were Fidelity Bank Plc, Zenith Bank Plc, and Universal Insurance Plc, collectively contributing significantly to the week’s trading volume and value.
The market breadth was weak, with 23 equities appreciating, 51 depreciating, and 73 remaining unchanged, reflecting the prevailing bearish sentiment.
Sectoral performance was predominantly negative, except for the NGX Banking Index, which saw gains driven by positive sentiment towards Guarantee Trust Holding Company, Fidelity Bank, AccessCorp, and Wema Bank. The NGX Insurance Index experienced the most substantial losses, followed by Oil & Gas, Consumer Goods, and Industrial Goods.
Top gainers for the week included VFD Group (+20.8 percent), Union Dicon (+19.60 percent), and Africa Prudential (+15.7 percent). Conversely, UAC Nigeria (-18.3 percent), SUNU Assurance (-13.4 percent), and Universal Insurance (-13.3 percent) were among the biggest losers.
As an observer of these market trends, I recognize the volatility and the challenges faced by investors. The delistings and regulatory actions highlight the importance of compliance and transparency in the Nigerian stock market. Investors should remain vigilant and consider diversifying their portfolios to mitigate potential losses.
