Nigeria stock market experienced a slight downturn last week, with the NGX All-Share Index and market capitalization both depreciating by 0.32%, closing at 104,233.81 and N65.499 trillion respectively. This market performance occurs against a backdrop of rising inflation, which hit 24.23% in March 2025, adding a layer of complexity to investor sentiment.
The four-day trading week, shortened by the Easter holidays, saw a total turnover of 1.525 billion shares worth N43.006 billion in 51,156 deals. This is a decrease compared to the previous week’s 2.094 billion shares valued at N52.967 billion across 64,612 deals. The Financial Services sector led in volume, accounting for 73.56% of the total equity turnover.
While the overall market dipped, certain sectors and indices showed resilience. The NGX Premium, NGX Pension, NGX MERI Growth, NGX Consumer Goods, NGX Oil & Gas, NGX Lotus II, NGX Growth, NGX Sovereign Bond, and NGX Pension Broad Indices all recorded gains. Notably, the NGX MERI Growth Index saw a significant appreciation of 2.67%.
However, other indices, such as the NGX Main Board Index and the NGX 30 Index, also closed lower, indicating a mixed performance across the market. Trading activity was concentrated in top equities like Access Holdings Plc, Fidelity Bank Plc, and Universal Insurance Plc, which together accounted for a substantial portion of the week’s turnover.
Top Performing Equities:
Despite the general market downturn, several stocks performed exceptionally well. The top 5 gainers for the week were:
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ABBEY MORTGAGE BANK PLC (46.17%)
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NIGERIAN BREW. PLC. (13.13%)
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ASSOCIATED BUS COMPANY PLC (12.70%)
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LIVESTOCK FEEDS PLC. (11.24%)
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UNILEVER NIGERIA PLC. (9.65%)
Worst Performing Equities:
Conversely, some stocks experienced significant losses. The top 5 losers for the week were:
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GUARANTY TRUST HOLDING COMPANY PLC (-13.24%)
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ZENITH BANK PLC (-11.91%)
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DAAR COMMUNICATIONS PLC (-11.11%)
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CAVERTON OFFSHORE SUPPORT GRP PLC (-10.63%)
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RT BRISCOE PLC. (-10.38%)
Inflationary Pressures:
Adding to the market’s volatility is the persistent rise in inflation. The Consumer Price Index (CPI) reached 117.34 in March 2025, with the headline inflation rate climbing to 24.23%, up from 23.18% in February 2025. This increase of 1.05% reflects growing pressure on consumer prices.
The key drivers of this inflation include:
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Food and Non-Alcoholic Beverages (contributing 9.28% YoY)
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Restaurants and Accommodation Services (contributing 2.99% YoY)
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Transport (contributing 2.47% YoY)
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Housing, Water, Electricity, Gas, and Other Fuels (contributing 1.95% YoY)
Market Impact:
The combination of a slightly bearish market and rising inflation creates a challenging environment for investors. Inflation erodes purchasing power and can lead to uncertainty in investment returns. While some sectors and individual stocks may perform well, overall market sentiment can be dampened by concerns over the broader economic outlook. The contrasting fortunes of the top gainers and losers highlight the volatility and the importance of selective investment strategies in the current climate.
For example, the report highlights that the NGX Banking Index depreciated by 5.43%, which could be partly attributed to investors reacting to the inflationary pressure and its potential impact on the financial sector.
The Nigerian stock market’s performance this week reflects a complex interplay of factors, with inflation and individual stock performance being key drivers. Investors are likely to remain cautious as they monitor both market trends and the broader economic indicators, seeking opportunities while managing risks.
