Onome Amuge
Banking and Oil stocks were major losers as the All Share index of the Nigerian equities market dropped 0.62 per cent week- on-week to close trading activities on Friday, May 23, 2025.
Market capitalization dropped by 0.29 per cent or N201.4 billion to N68.75 trillion as a result of the losses recorded by Fidelity Bank Plc, Aradel Holdings Plc, and Zenith Bank Plc. Other big losers of the week are Access Corporation Plc , Oando Plc and Wema Bank Plc.
Analysts noted that Nigeria’s equity market concluded the week in negative territory, as investors adjusted portfolios in the wake of the Central Bank of Nigeria’s (CBN) latest monetary policy decision, a contrast to robust gains recorded in the previous four weeks.
The benchmark NGX All-Share Index was down 0.62 per cent week-on-week, settling at 109,028.62 points, dragged down by sell-offs across the banking and energy sectors.
This market correction appears to stem from rebalancing activities initiated after the CBN’s 300th Monetary Policy Committee meeting, which saw all policy parameters maintained. Market capitalisation mirrored this contraction, dipping by 0.29 per cent to close at N68.75 trillion.
The decline was partly amplified by the listing of an additional 34.2 billion new ordinary shares from United Bank for Africa Plc’s (UBA) Rights Issue. This expanded market float contributed to a notional loss of approximately N201.4 billion in investor wealth. Consequently, the year-to-date return on the index moderated to 5.93 per cent, despite a relatively positive market breadth, with 52 gainers outnumbering 41 losers.
Despite the negative headline performance, trading activity remained vigorous. Weekly transaction volume increased by 50.8 per cent to 3.92 billion units, executed across 105,012 deals – a 35.7% increase in deal count. The total value of trades also rose by 17.2 per cent, reaching N74.61 billion, underscoring resilient investor appetite even amid short-term volatility.
Meanwhile, sectoral performance was mixed. The NGX Consumer Goods Index led the advancers, climbing 2.18 per cent on renewed buying interest in bellwether names such as Nestlé Nigeria, Tantalizers, Guinness Nigeria, and Ikeja Hotel. The NGX Insurance and NGX Industrial Goods indices also posted marginal gains of 0.73 per cent and 0.72 per cent respectively, buoyed by improved sentiment in counters like CUTIX, Custodian Investment, Regal Insurance, Tripple Gee, Beta Glass, and Linkage Assurance.
Conversely, the NGX Oil & Gas Index suffered the heaviest losses of 3.44 per cent. The NGX Banking Index followed, dropping 1.52 per cent, and the NGX Commodity Index lost 0.75 per cent. This sectoral drag was primarily attributed to price declines in key stocks including Fidelity Bank, Aradel Holdings, AccessCorp, Oando, Wema Bank, and Zenith Bank.
Among the week’s top-performing equities, Regal Insurance stood out with an 18.2 per cent gain, closely followed by Linkage Assurance (17.6%), Tantalizers (17.4%), E-Tranzact (15.3%), and Tripple Gee (15.0%).
The worst performers included Chellarams (-10.0%), Caverton Offshore (-9.5%), Legend Intercontinental (-9.5%), Learn Africa (-8.9%), and The Initiates Plc (TIP), which declined by 8.8 per cent.
Looking ahead to the new trading week, analysts at Cowry Asset Management anticipate market sentiment will remain cautiously optimistic. The upcoming release of Nigeria’s Q1 2025 GDP report is expected to influence investor positioning, particularly if it confirms positive economic output growth. Additionally, the ongoing corporate earnings season is expected to provide fresh catalysts for stock-specific rallies.
“At Cowry Research, we maintain a broadly constructive outlook for the near term and continue to advise investors to focus on fundamentally sound companies with strong earnings visibility and resilience to macroeconomic headwinds,” they concluded.
