Lagos — Nigerian stocks faced another challenging session on Wednesday, extending their losing streak as the NGX All-Share Index declined by 1.47%. A 10% drop in Dangote Cement was the key driver, leading to a market capitalization decline of NGN 931 billion, closing at NGN 62.257 trillion.
Sector performance was mixed, with losses in the NGX Industrial Goods and Insurance indices, while Consumer Goods and Oil & Gas saw modest gains. Market sentiment remained negative, with 39 stocks declining against 28 gainers, despite notable 10% gains by Dangote Sugar, SUNU Assurance, and NASCON Allied Industries.
Trading volumes also weakened, down 14.79% to 435.542 million shares across 12,098 deals, led by Universal Insurance and AIICO Insurance. The market’s weakness highlights risk-averse behaviour, with pressure on key stocks undermining broader confidence, though sectoral gains offered limited support.
Meanwhile, inflationary pressures continue to weigh on the financial market. Nigeria’s inflation rate rose to a near 30-year high of 34.8% in December 2024, up from 34.6% in November, marking the fourth consecutive monthly increase.
Food inflation eased slightly to 39.84% but remained elevated, while the monthly CPI increase slowed to 2.44% from 2.64%. Persistent inflation erodes corporate profitability and household purchasing power, constraining liquidity in the equity market. In the short term, inflationary pressures continue to challenge investor sentiment and weigh on the broader financial market.
*Daniel Wesonga, Senior Sales Manager at Pepperstone
