This week, investors evaluated mixed company earnings, dividend announcements, and a minor decline in inflation. As a result, the Nigerian Stock Market (NGX) All-Share Index and market capitalisation declined by 1.51%, closing at 97,100.31 points and N55.132 trillion, respectively.
This decline took place concurrently with Nigeria’s headline inflation rate declining, from 34.19% in June to 33.40% in July—the lowest level since December 2022.
Even though the decline in inflation was a positive development, investor confidence was not greatly increased given the persistent economic uncertainty.
Market Outcomes
After closing the previous week at 98,592.12 points, the NGX All-Share Index had a 1.51% decrease at 97,100.31 points. Following suit, market capitalisation decreased from N55.933 trillion to N55.132 trillion.
With the exception of NGX Insurance (+0.79%), NGX Consumer Goods (+0.37%), NGX Oil & Gas (+5.25%), NGX Lotus II (+0.42%), and NGX Growth (+6.14%), most indexes saw falls, indicating a generally negative outlook on the market.
Leading the decreases was the NGX Main Board Index, which closed at 4,654.62 points after losing 2.00%.
Significant losses were also experienced by the NGX Banking Index, which dropped by 2.28% to 837.67 points, and the NGX 30 Index, which dropped by 1.19% to 3,598.60 points. There was no change to the NGX ASeM Index.
Leading Gainers
This week, 39 stocks saw gains despite the general market downturn. Gainers included R T Briscoe Plc, which closed at N1.70 after rising 33.86%, and TotalEnergies Marketing Nigeria Plc, which increased 19.69% to N511.90. Strong performance was also shown by Julius Berger Nigeria Plc, which closed at N130.00 after rising 18.18%.
Other noteworthy gainers included:
Guinea Insurance Plc: raised 17.65% to N0.40 in value
Academic Press Plc: increased by 12.39% to N2.45
Nascon Allied Industries Plc rose 11.59% to N35.15.
Eterna Plc: up 11.11 percent to N22.00.
Dangote Sugar Refinery Plc rose 10.76% to N40.65.
SFS Real Estate Investment Trust rose 9.96% to N111.50.
Champion Breweries Plc saw a 9.75% increase to N3.04.
Leading Losers
On the other hand, 66 stocks saw decreases, with Cutix Plc topping the losers with a 17.50% dip to N4.95. Oando Plc dropped by 11.70% to N35.85, while BUA Cement Plc sank 14.82% to N109.80.
Other noteworthy losses were:
Learn Africa Plc is down 10.89% to N3.52.
Chams Holding Company Plc is down 10.22% to N2.02.
Cadbury Nigeria Plc is down 9.95% to N18.10.
Academy Press Plc dropped 9.03% to N2.62, while CWG Plc fell 8.73% to N5.75.
Deap Capital Management & Trust Plc fell 8.51% to N0.43.
Japaul Gold & Ventures Plc is down 7.95% to N2.20.
Corporate Announcements
The week featured a number of significant corporate announcements, mainly about dividend payments.
Bua Cement Plc adjusted its share price after paying a N2.00 dividend, closing at N126.90 per share after the ex-dividend date.
Similarly, Flour Mills of Nigeria Plc finished at N44.20 after a N1.80 dividend adjustment, and FBN Holdings Plc adjusted to N21.60 after a N0.40 payout.
The Rights Issue by Access Holdings Plc has been extended by ten days, with a closing date of August 23, 2024. In the company’s rights issue, 17.77 billion common shares are being offered for N19.75 apiece.
Financial details
The headline inflation rate in Nigeria fell for the first time since December 2022, from 34.19% in June to 33.40% in July 2024.
According to data from the National Bureau of Statistics, July’s month-over-month inflation rate was 2.28%, which was somewhat less than June’s 2.31%.
A reduction in the cost of food and non-alcoholic beverages, which accounted for 17.30% of inflation year over year, was the main factor causing the inflation to decline.
Prospects
Future data releases, such as the NBS reports on specific food prices, AGO and fuel prices, transportation prices and capital importation figures, are anticipated to cause a reaction in the market.
Market players will keep a careful eye on these data points in order to spot any signs of potential future economic movements.
