Equities Investors Lose N110bn in Three Days Despite Dividend Buzz

Samuel Mobolaji

The Nigerian stock market closed the holiday-shortened week in the red, shedding N110 billion in market capitalisation as bearish sentiment overpowered the positive momentum from strong earnings and dividend announcements.

Trading was limited to three sessions following the Federal Government’s declaration of Monday, March 31, and Tuesday, April 1, 2025, as public holidays to mark the Eid el Fitr celebration. Despite impressive 2024 audited results—particularly from the banking sector—the market could not sustain gains.

The NGX All-Share Index (ASI) fell by 0.14 per cent week-on-week to close at 105,511.89 points, while market capitalisation dipped to N66.147 trillion from N66.257 trillion.

Sector performance was broadly negative, with the NGX Insurance index leading the decline at 5.36 per cent. Oil & Gas dipped 1.20 per cent, Consumer Goods dropped 0.70 per cent, and Industrial Goods shed 0.22 per cent. The NGX Commodity index remained flat, while the NGX Banking index defied the trend, gaining 1.50 per cent on dividend-driven interest.

Investor sentiment was slightly positive as 23 stocks advanced against 51 losers, with 73 remaining unchanged. VFD Group topped the gainers’ chart, rallying 20.76 per cent to close at N57.00 per share. Union Dicon Salt rose 19.59 per cent to N5.80, while Africa Prudential gained 15.71 per cent to settle at N15.10.

On the flip side, UACN led the laggards, plunging 18.31 per cent to N29.00. SUNU Assurance and Universal Insurance followed, declining 13.38 per cent and 13.33 per cent to close at N5.76 and 52 kobo respectively.

Market activity slowed significantly, with a total turnover of 1.183 billion shares worth N28.868 billion exchanged in 42,397 deals—far lower than the 7.521 billion shares valued at N398.949 billion traded in the previous week’s 61,312 deals.

Looking ahead, Cowry Asset Management expects a mixed week as investors digest corporate actions and reinvest dividends in fundamentally sound stocks. Meanwhile, macroeconomic trends and global cues are likely to steer market direction.

Mr. Ambrose Omordion, Chief Operating Officer at InvestData Consulting Limited, said sentiment will remain cautious amid continued bargain hunting, profit-taking, and portfolio reshuffling.

“With more earnings releases and dividend declarations on the horizon, sector rotation and value investing will dominate activity. Volatility and short-term pullbacks may create fresh entry opportunities for discerning investors,” he said.