Meyer Plc emerged as one of the worst-performing stocks on the Nigerian Exchange in the week ended December 5, as investors offloaded shares in a wave of bearish sentiment that dragged the paint manufacturer’s price sharply lower. The stock shed about 18.89 per cent of its value during the week, closing at N13.10 and marking one of its steepest weekly declines in recent months.

The downturn came despite the broader market’s rebound, with the All-Share Index gaining 2.45 per cent over the same period. This divergence underscores the stock-specific pressures weighing on Meyer, rather than a sector-wide or market-wide pullback. Market data showed that while several mid- and large-cap counters recovered, Meyer faced sustained sell pressure from the opening sessions of the week through to Friday’s close.

Analysts linked the sharp decline to weakened investor sentiment and profit-taking following the company’s earlier months of strong price appreciation. Meyer had staged a notable rally in the third quarter of the year, buoyed by improving earnings and renewed investor interest in industrial goods stocks. However, the latest correction indicates that sentiment has turned cautious, with traders locking in gains amid a volatile market environment.

The company’s fundamentals had appeared supportive going into the week. Meyer recently reported improved profitability, including a significant increase in net income for the nine months ended September 2025. But the selloff suggests that investors may be prioritising liquidity needs and short-term market signals over earnings strength. Some market watchers also pointed to broader caution around small- and mid-cap stocks as investors repositioned portfolios ahead of year-end.

With the week’s slump, Meyer’s market capitalization fell to about N6.96 billion, reversing part of the gains recorded earlier in the year. Despite the setback, the stock remains positive year-to-date, reflecting the strong rally that preceded this correction.

Market operators say the latest pullback may create an attractive entry point for long-term investors who believe in the company’s fundamentals and improving operational performance. However, they warn that volatility may persist in the near term, given the overall fragility of investor confidence and the sensitivity of mid-tier stocks to shifts in market liquidity.

For now, Meyer’s sharp decline stands out as one of the notable drags of the week, highlighting how quickly sentiment can turn in a market still navigating inflationary pressures, tight liquidity, and shifting risk appetite. Whether the stock stabilises in the coming sessions will depend largely on renewed buying interest and the broader tone of the market as the year draws to a close.

Meyer Plc has demonstrated solid growth in its financial standing as of 30 September 2025. The company’s total assets increased to N3.08 billion, a notable rise from N2.84 billion in the corresponding period of 2024. This growth was supported by a strengthened equity position, which expanded to N2.04 billion from N1.83 billion year-on-year. Total liabilities saw a marginal increase to N1.04 billion from N1.01 billion, indicating effective liability management alongside asset growth. The company’s net current assets also improved, reaching N1.64 billion, showcasing enhanced liquidity and a robust short-term financial health.

 

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