Consumer goods sector struggles as market valuation declines

The Nigerian consumer goods sector is currently grappling with significant challenges, as key stocks in the beverages, food products, and household durables industries experience substantial declines in their market value, resulting in a drop in overall market capitalisation.

In the beverages segment, Golden Guinea Breweries saw no movement in market cap, with its price remaining stagnant at N8.64. Meanwhile, Guinness Nigeria Plc faced a sharp 35 per cent price drop, closing at N70.00 after 165,339 shares were traded. Other notable declines included International Breweries, whose stock fell by 23 per cent to N5.40, and Nigerian Breweries, which experienced a drastic 69 per cent decrease, with its price plunging to N31.90. In total, the sector registered a trade volume of 713,283 shares.

The food products sector saw mixed performances. BUA Foods Plc maintained its price at N415.00, while Dangote Sugar Refinery witnessed a sharp 230 per cent decline, with its price dropping to N38.50. Honeywell Flour Mill’s price fell by 8.59 per cent to N9.05, while Multi-Trex Integrated Foods reported no trades. On a positive note, Nascon Allied Industries Plc recorded a modest 3.59 per cent increase, reaching N39.00. This sector had a total trading volume of 9.5 million shares.

In the diversified food products category, major players also faced setbacks. Cadbury Nigeria Plc saw its price drop by 70 per cent to N22.80, and Nestle Nigeria Plc’s stock plunged by 76 per cent, ending the day at N875.00. This segment posted a market cap of N146 million and a total trade volume of 302,943 shares.

According to data from the Nigerian Exchange Limited, the collective market capitalisation of Nigeria’s beverage and food sectors now stands at N10.84 trillion, a notable decline from previous trading periods.