2024 Market Laggards: Five Listed Firms Suffer Over 30% Share Price Decline
While the Nigerian Exchange Limited (NGX) celebrated a strong year of growth in 2024, with the All-Share Index (ASI) soaring by 37% and market capitalization gaining ₦22 trillion, five listed companies endured sharp declines, with their share prices dropping by over 30%.
The Worst Performers
1. Multiverse Mining and Exploration
• Opening Price: ₦18.57
• Closing Price: ₦8.08
• Loss: 60.4%
2. NASCON (National Salt Company of Nigeria)
• Opening Price: ₦53.75
• Closing Price: ₦30.00
• Loss: 41.7%
3. Dangote Sugar Refinery
• Opening Price: ₦57.00
• Closing Price: ₦32.50
• Loss: 43.0%
4. Daar Communications
• Opening Price: ₦0.90
• Closing Price: ₦0.63
• Loss: 30.0%
5. Thomas Wyatt
• Opening Price: ₦2.70
• Closing Price: ₦1.90
• Loss: 30.0%
Key Factors Behind the Declines
• Economic Pressures: Rising inflation, high borrowing costs, and a weakening naira squeezed profitability for companies like Dangote Sugar.
• Operational Challenges: NASCON struggled with increased energy costs, while Multiverse faced regulatory and production inconsistencies in the mining sector.
• Sector-Specific Issues: DAAR Communications and Thomas Wyatt grappled with sluggish growth in their respective industries.
Industry Insights and Way Forward
Market operators highlighted the need for these companies to:
• Innovate and adapt to market dynamics.
• Embrace backward integration to reduce costs.
• Develop resilient business models to regain investor confidence.
According to Olugbosun Ariyo, a member of the Exceptional Shareholders Association of Nigeria, inflation, energy costs, and foreign exchange crises were primary contributors to the underperformance.
Conclusion
Despite the overall market optimism in 2024, the challenges faced by these firms serve as a reminder of the diverse pressures within the Nigerian economy. Analysts remain hopeful that strategic adjustments could pave the way for recovery in 2025.
While the Nigerian Exchange Limited (NGX) celebrated a strong year of growth in 2024, with the All-Share Index (ASI) soaring by 37% and market capitalization gaining ₦22 trillion, five listed companies endured sharp declines, with their share prices dropping by over 30%.
The Worst Performers
1. Multiverse Mining and Exploration
• Opening Price: ₦18.57
• Closing Price: ₦8.08
• Loss: 60.4%
2. NASCON (National Salt Company of Nigeria)
• Opening Price: ₦53.75
• Closing Price: ₦30.00
• Loss: 41.7%
3. Dangote Sugar Refinery
• Opening Price: ₦57.00
• Closing Price: ₦32.50
• Loss: 43.0%
4. Daar Communications
• Opening Price: ₦0.90
• Closing Price: ₦0.63
• Loss: 30.0%
5. Thomas Wyatt
• Opening Price: ₦2.70
• Closing Price: ₦1.90
• Loss: 30.0%
Key Factors Behind the Declines
• Economic Pressures: Rising inflation, high borrowing costs, and a weakening naira squeezed profitability for companies like Dangote Sugar.
• Operational Challenges: NASCON struggled with increased energy costs, while Multiverse faced regulatory and production inconsistencies in the mining sector.
• Sector-Specific Issues: DAAR Communications and Thomas Wyatt grappled with sluggish growth in their respective industries.
Industry Insights and Way Forward
Market operators highlighted the need for these companies to:
• Innovate and adapt to market dynamics.
• Embrace backward integration to reduce costs.
• Develop resilient business models to regain investor confidence.
According to Olugbosun Ariyo, a member of the Exceptional Shareholders Association of Nigeria, inflation, energy costs, and foreign exchange crises were primary contributors to the underperformance.
Conclusion
Despite the overall market optimism in 2024, the challenges faced by these firms serve as a reminder of the diverse pressures within the Nigerian economy. Analysts remain hopeful that strategic adjustments could pave the way for recovery in 2025.