Nigerian Stock Market Analysis: January 27, 2025

The Nigerian stock market showcased notable performances today, with gains and losses across various sectors. Here’s a detailed analysis of the market trends, leading performers, and the sectors that drove market activity.

Top 5 Performers

The market’s top-performing stocks on January 27, 2025, were as follows:

1. Chellarams Plc (CHELLARAM)
   • Sector: Producer Manufacturing
   • Price: ₦4.07
   • 1-Day Change: +10.0%
2. Guinness Nigeria Plc (GUINNESS)
   • Sector: Consumer Non-Durables
   • Price: ₦77.00
   • 1-Day Change: +10.0%
3. SCOA Nigeria Plc (SCOA)
   • Sector: Consumer Durables
   • Price: ₦3.96
   • 1-Day Change: +10.0%
4. Transcorp Power Plc (TRANSPOWER)
   • Sector: Utilities
   • Price: ₦349.80
   • 1-Day Change: +7.96%
5. Lasaco Assurance Plc (LASACO)
   • Sector: Finance
   • Price: ₦3.28
   • 1-Day Change: +7.19%

The growth in these stocks indicates a bullish sentiment, particularly in the manufacturing and consumer goods sectors, with Guinness Nigeria Plc leading in the consumer non-durables space.

Worst 5 Performers

The laggards in the market included:

1. Neimeth International Pharmaceuticals Plc (NEIMETH)
   • Sector: Health Technology
   • Price: ₦3.10
   • 1-Day Change: -9.88%
2. John Holt Plc (JOHNHOLT)
   • Sector: Consumer Services
   • Price: ₦8.30
   • 1-Day Change: -9.78%
3. International Energy Insurance Co Plc (INTENEGINS)
   • Sector: Finance
   • Price: ₦1.76
   • 1-Day Change: -9.74%
4. Sovereign Trust Insurance Plc (SOVRENINS)
   • Sector: Finance
   • Price: ₦1.06
   • 1-Day Change: -9.40%
5. Austin Laz and Co Plc (AUSTINLAZ)
   • Sector: Consumer Durables
   • Price: ₦1.82
   • 1-Day Change: -9.0%

The performance of these stocks highlights challenges in health technology and consumer services, which faced sell-offs driven by market pessimism.

Sectoral Insights

• Best Sectors:
  • Utilities: Driven by Transcorp Power Plc’s robust performance.
  • Consumer Non-Durables: Boosted by Guinness Nigeria Plc.
  • Transportation: Continued investments in transport infrastructure reflected positively on sector leaders.
• Worst Sectors:
  • Health Technology: High inflation and currency volatility have negatively impacted this sector.
  • Finance: Despite some bright spots, key players underperformed.
  • Consumer Services: Sluggish demand affected growth.

Market Indices

1. NGX All-Share Index:
   • Value: 104,469.17
   • Change: +0.84%
   • Volume Traded: 506,368,485 shares
2. NGX 30 Index:
   • Value: 3,880.29
   • Change: +0.88%
   • Volume Traded: 257,108,679 shares
3. NGX Meristem Growth Index:
   • Value: 7,346.58
   • Change: +3.47%
   • Volume Traded: 119,285,412 shares

Macro-Economic Context

• Inflation: Nigeria’s year-on-year inflation rate stood at 34.80% in December 2024, limiting consumer spending power.
• Interest Rates: The Central Bank of Nigeria (CBN) maintained a monetary policy rate of 27.5%, keeping borrowing costs high.
• Exchange Rate: The Naira closed at ₦1,531/$, showcasing slight stability in the forex market.

Outlook

The Nigerian market remains poised for growth, driven by strong performances in utilities and manufacturing. However, challenges persist, with inflation and monetary policies potentially tempering consumer demand.

Investors are advised to focus on sectors with robust fundamentals and monitor macroeconomic indicators for better decision-making.