Nigerian Equities Market Continues Decline: NGX Falls 0.05%

March 23, 2025

(3 Minutes Read)

Nigeria’s equities market continued its downward trend, with the benchmark NGX All-Share Index (ASI) slipping by 0.05 per cent. This marks the fourth consecutive day of losses on the Nigerian Exchange Limited (NGX). The year-to-date (YtD) return has decreased to +1.88 per cent, down from earlier gains this month. Currently, the month-to-date return stands at -2.75 per cent, and the week-to-date return has fallen by 1.03 per cent.

At the end of trading, the NGX All-Share Index dropped from 104,915.13 basis points on Wednesday to 104,858.77 points. Additionally, the market capitalisation fell by N35 billion, closing at N65.754 trillion, down from N65.789 trillion. This decline was primarily due to sell-offs in medium- to large-cap stocks, including Livestock Feeds, Custodian Investment, UPDC, and Chams. Livestock Feeds experienced the largest drop, falling 9.57 per cent to close at N7.65 from N8.46. Custodian Investment decreased by 6.98 per cent to N20.00, UPDC fell 6.23 per cent to N2.86, and Chams dropped 5.16 per cent to N2.02.

Despite the overall market decline, trading activity was strong, with 310.52 million shares valued at N6.25 billion changing hands across 10,182 deals. Active stocks included Fidelity Bank, Veritas Kapital, Nigerian Breweries, Zenith Bank, and Access Holdings, which contributed significantly to the session’s volume. Investors are taking a cautious approach amid uncertainties in the macroeconomic landscape and a lacklustre corporate earnings outlook from various listed companies.

Analysts believe the market could remain under pressure in the short term unless investor sentiment shifts, potentially aided by positive economic indicators or strong first-quarter earnings reports. Sector performance varied, showing some resilience in select banking stocks, while industrial and consumer goods sectors faced challenges. The overall mood remained subdued as market participants kept an eye on inflation, interest rates, and fiscal reforms. Upcoming company earnings announcements and macroeconomic developments will likely influence the market’s direction in the days ahead, reflecting the cautious sentiment among investors navigating a complex domestic and global environment.