The Nigerian stock market has continued its dynamic movement, reflecting trends across various sectors. On February 5, 2025, several stocks posted remarkable gains while others struggled, shaping investor sentiment. This report provides a comprehensive analysis of top gainers, worst-performing stocks, sector performance, and macroeconomic indicators influencing the market.
Market Overview
The NGX All-Share Index (NGXASI) closed at 105,346.52, marking a 0.53% increase from the previous day’s close of 104,788.35. The market witnessed strong bullish momentum, with the NGX 30 Index and NGX Meristem Growth Index also registering gains of 0.53% and 1.54%, respectively.
Top 5 Performers
Investors saw impressive gains from companies in finance, energy minerals, and consumer non-durables sectors. Here are the top five gainers of the day:
| Symbol | Company Name | Sector | Price (NGN) | Price Change (%) |
|---|---|---|---|---|
| GUINEAINS | Guinea Insurance Plc | Finance | 0.88 | 10.00% |
| ETERNA | Eterna Plc | Energy Minerals | 30.35 | 9.96% |
| CADBURY | Cadbury Nigeria Plc | Consumer Non-Durables | 24.30 | 9.95% |
| INTENEGINS | International Energy Insurance Co Plc | Finance | 2.33 | 9.91% |
| FBNH | FBN Holdings Plc | Finance | 32.10 | 9.56% |
The rally in Guinea Insurance Plc and Eterna Plc indicates renewed investor confidence in finance and energy sectors, possibly driven by increasing demand for financial services and rising crude oil prices.
Worst 5 Performers
Despite the positive market trend, some stocks suffered losses. Below are the worst performers:
| Symbol | Company Name | Sector | Price (NGN) | Price Change (%) |
|---|---|---|---|---|
| MAYBAKER | May & Baker Nigeria Plc | Health Technology | 7.75 | -9.88% |
| ACADEMY | Academy Press Plc | Consumer Services | 2.72 | -9.33% |
| THOMASWY | Thomas Wyatt Plc – Nigeria | Distribution Services | 1.85 | -9.31% |
| DEAPCAP | Deap Capital Management and Trust Plc | Finance | 0.96 | -6.80% |
| TIP | The Initiates Plc | Commercial Services | 3.47 | -6.72% |
The decline in May & Baker Nigeria Plc suggests market concerns over pharmaceutical demand or regulatory factors affecting the health technology sector. The consumer services and finance sectors also saw notable declines.
Sector Performance
Best Performing Sectors
- Energy Minerals – Supported by rising crude oil prices ($74.72 per barrel).
- Technology Services – Investors are optimistic about tech-driven financial services.
- Electronic Technology – Positive sentiment from infrastructure expansion projects.
- Finance – A mix of gains and losses but overall resilient.
- Consumer Non-Durables – Companies like Cadbury Nigeria Plc benefitted from increased demand.
Worst Performing Sectors
- Distribution Services – Declining trade volume contributed to the slump.
- Commercial Services – Weak performance across logistics firms.
- Health Technology – May & Baker Nigeria Plc led sector losses.
- Consumer Durables – Slower retail sales affecting demand.
- Consumer Services – Academy Press Plc faced a steep drop.
Macroeconomic Factors Impacting the Market
Several macroeconomic factors influenced the stock market’s performance:
- Inflation Rate: Nigeria’s year-on-year inflation stood at 34.80% in December 2024, signaling high living costs that could impact consumer-driven stocks.
- Monetary Policy Rate (MPR): The Central Bank of Nigeria (CBN) kept the MPR at 27.50%, maintaining a tight monetary stance.
- Exchange Rate Fluctuations: The Naira traded at ₦1,499/$ on February 4, 2025, a slight depreciation compared to previous days, impacting import-dependent sectors.
- Bond Market Stability: The Nigerian 2-Year Bond held steady at 23.606%, with investors maintaining confidence in fixed-income securities.
Investment Outlook
The market’s bullish momentum presents both opportunities and risks for investors. Key considerations include:
- Energy and Finance Stocks: Continued strong performance driven by higher crude oil prices and banking sector resilience.
- Consumer Stocks: Potential volatility due to inflation and lower consumer spending power.
- Tech and Growth Stocks: Favorable long-term outlook amid digital transformation trends.
- Fixed-Income Investments: Despite some bond market losses, long-term yields remain attractive for risk-averse investors.
Conclusion
The Nigerian stock market delivered a mix of bullish trends and sector-specific declines on February 5, 2025. Investors should watch macroeconomic indicators, sector rotations, and corporate earnings reports in the coming weeks to adjust strategies accordingly.
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