Nigerian Market Performance as of January 14, 2025

Overview of Nigerian Stock Market Indices

The Nigerian Stock Exchange (NGX) displayed a mixed performance on January 14, 2025, influenced by macroeconomic factors, including inflation at 34.6% and elevated interest rates. These challenges weighed on market sentiment, but select stocks and sectors showcased resilience.

NGX All-Share Index (ASI)

• Current Value: 103,622.09
• Change: -1,745.16 points (-1.66%)
• High: 105,456.36
• Low: 103,607.62
• Volume Traded: 508,147,554 shares

The All-Share Index (ASI) recorded a significant drop, reflecting investor caution. This downturn was attributed to losses in major industrial and financial stocks, alongside profit-taking activities in select equities.

NGX 30 Index

• Current Value: 3,831.08
• Change: -73.36 points (-1.88%)
• High: 3,906.82
• Low: 3,830.97

The NGX 30, tracking the top 30 most liquid and capitalized stocks, mirrored the broader market’s bearish trend. Leading decliners included Dangote Cement and Julius Berger.

Sectoral Indices Performance

• NGX Oil and Gas Index: +1.34% (Benefiting from crude oil stabilization at $75.44 per barrel.)
• NGX Banking Index: -1.12% (Pressured by monetary tightening.)
• NGX Industrial Index: -2.07% (Major sell-offs in Dangote Cement.)
• NGX Consumer Goods Index: +0.88% (Boosted by gains in Northern Nigeria Flour Mills.)

Top 5 Gainers

1. Northern Nigeria Flour Mills Plc (NNFM)
   • Price: NGN 45.10
   • 1-Day Change: +10.00%
   • Sector: Process Industries
   • Commentary: NNFM led the market, driven by strong demand for its processed goods and positive investor sentiment.
2. Livestock Feeds Plc (LIVESTOCK)
   • Price: NGN 6.10
   • 1-Day Change: +9.91%
   • Sector: Process Industries
   • Commentary: Investor optimism surrounding operational efficiency and market expansion boosted performance.
3. Academy Press Plc (ACADEMY)
   • Price: NGN 3.22
   • 1-Day Change: +9.90%
   • Sector: Consumer Services
   • Commentary: Favorable earnings expectations ahead of the January 24 earnings release buoyed the stock.
4. University Press Plc (UPL)
   • Price: NGN 4.81
   • 1-Day Change: +9.82%
   • Sector: Consumer Services
   • Commentary: Continued growth in the publishing segment supported UPL’s bullish movement.
5. Neimeth International Pharmaceuticals Plc (NEIMETH)
   • Price: NGN 3.15
   • 1-Day Change: +9.76%
   • Sector: Health Technology
   • Commentary: Positive developments in the pharmaceutical sector and anticipated regulatory approvals drove investor interest.

Top 5 Losers

1. Honeywell Flour Mills Plc (HONYFLOUR)
   • Price: NGN 9.54
   • 1-Day Change: -10.00%
   • Sector: Process Industries
   • Commentary: Weak earnings guidance and cost pressures led to the steep decline.
2. Dangote Cement Plc (DANGCEM)
   • Price: NGN 431.00
   • 1-Day Change: -9.98%
   • Sector: Non-Energy Minerals
   • Commentary: Profit-taking and concerns over production costs contributed to the loss.
3. Julius Berger Nigeria Plc (JBERGER)
   • Price: NGN 139.80
   • 1-Day Change: -9.98%
   • Sector: Industrial Services
   • Commentary: Delayed projects and foreign exchange challenges impacted investor confidence.
4. Sovereign Trust Insurance Plc (SOVRENINS)
   • Price: NGN 1.12
   • 1-Day Change: -9.68%
   • Sector: Finance
   • Commentary: Regulatory concerns weighed heavily on the stock.
5. Prestige Assurance Plc (PRESTIGE)
   • Price: NGN 1.17
   • 1-Day Change: -9.30%
   • Sector: Finance
   • Commentary: Market volatility and reduced underwriting income pressured the stock.

Sector Analysis

Best Performing Sectors

1. Consumer Durables: Benefiting from consistent demand despite inflationary pressures.
2. Health Technology: Gains fueled by increasing healthcare investment and positive earnings outlook.
3. Consumer Services: Growth driven by publishing and retail service stocks.

Worst Performing Sectors

1. Industrial Services: Impacted by higher costs and delayed project timelines.
2. Finance: Struggled under tightening monetary policy.
3. Non-Energy Minerals: Affected by subdued construction activity and raw material costs.

Outlook for Investors

Investors should remain cautious, as macroeconomic headwinds such as inflation and elevated borrowing costs may continue to pressure equities. However, opportunities exist in resilient sectors like healthcare and consumer durables. Earnings reports in the coming weeks could provide clearer direction for the market.