Five listed firms record over 30% loss in share price in 2024

At the end of the 2024 financial year, five listed firms across sectors posted over 30 per cent yearly loss, rating the stocks among the worst performers on the country’s bourse in the period.

These firms are Multiverse Mining and Exploration, Dangote Sugar Refinery, National Salt Company of Nigeria (NASCON), Daar Communication and Thomas Wyatt.
While 2024 proved to be a year of growth for the Nigerian Exchange Limited (NGX), with many stocks seeing impressive gains, these companies faced a starkly different reality that impacted negatively on their bottom lines and investors’ confidence.

At the close of transactions on December 31, 2024, the all-share index (ASI) closed at 102,926.4 points from 74, 773.77at which it opened trading in the year, representing 37 per cent growth.

Market capitalisation gained N22 trillion to close at N62.763 trillion from N40.918 trillion. Amid the 2024 positive market trends, five stocks recorded a decline of over 30 per cent, raising questions about the unique challenges the companies encountered in the year.

For instance, Multiverse Mining and Exploration began the 2024 financial year with a share price of N18.57 kobo but lost 60.4 per cent off that price valuation to close at N8.08 kobo on Tuesday, December 31.

Similarly, NASCON, which resumed trading last January at a share price of 53.75 kobo, closed on Tuesday at N30, shedding 41.7 per cent from the price. For Dangote Sugar, the company closed its last trading day on Tuesday, December 31 at 32.50 kobo, down from N57 at which it resumed trading in January, representing a 43 per cent loss.

Daar Communications began the 2024 financial year with a share price of 90 kobo but lost 30 per cent off that price valuation to lose the last trading day in 2024 at 63 kobo. In addition, Thomas Wyatt also declined by 30 per cent from N2 70 kobo to N1.90 kobo.

The sharp drops stood in contrast to the broader optimism, drawing the attention of analysts, investors and market operators who reeled out the underlying factors driving the downturn in these specific stocks.

According to operators, while Dangote sugar has been significantly affected by soaring inflation, increased borrowing costs, and the depreciation of the Nigerian naira which have collectively strained liquidity and profitability, NASCON on the other hand was faced with rising operational costs, including higher energy prices, which have adversely affected profit margins.

Also, Multiverse Mining and Exploration, with its focus on the mining sector, saw its stock fall due to inconsistent production results and regulatory challenges in Nigeria’s mining industry.

The operators noted that each of these companies while grappling with their individual struggles, must adopt innovative strategies, deepen backward integration, embrace a more resilient business model and have a strong commitment to adapting to market shifts in order to weather the storm and reclaim investor confidence.

Members of the Exceptional Shareholders Association of Nigeria, Olugbosun Ariyo, said the performance of the stocks plummeted in 2024 majorly due to high operational loss as a result of rising inflation and energy costs exacerbated with foreign exchange crises. He said Dangote Sugar was faced with rising production costs and inflation, which shrank its profit margins and hindered profitability despite its strong market position.