Nigerian Equities Market Return Tops 62% as Investors Gain N1.5trn
With a weekly gain of about N1.5 trillion, the Nigerian equities market closed the week on a positive note, supported by renewed demand for selected stocks.
The Nigerian Exchange (NGX) All-Share Index (ASI) advanced by 0.92% week-on-week (WoW) to close at 252,113.41 points, driven by sustained bargain hunting.
The buying interest that lasted for four out of five trading sessions lifted the stock market capitalisation to approximately N163.66 trillion.
The market’s year-to-date return rose to 62.01%. Despite the positive performance, market breadth remained negative, with 60 gainers against 71 losers, resulting in a breadth ratio of 0.85x.
The negative breadth reflected mixed investor sentiment, as declining stocks outnumbered advancing counters, Cowry Asset Limited said in a note. Stockbrokers said trading activity was mixed across the major market indicators.
While the number of deals declined by 9.11% week-on-week, trading volume and transaction value increased by 44.99% and 1.59%, respectively. In total, investors exchanged 4.69 billion shares, valued at N240.96 billion, across 261,671 deals.
Sectoral performance remained broadly positive during the week, reflecting continued broad-based appetite for equities, particularly in Oil & Gas and Banking stocks.
Market analysts said the relative weakness in Insurance, however, suggests that investor participation remains selective, with capital continuing to rotate towards sectors and counters offering stronger near-term catalysts.
The Oil & Gas sector gained 3.49%, supported by strong performances in ETERNA and SEPLAT, which more than offset the decline in TOTAL. Continued buying interest in selected energy stocks provided the sector with further momentum.
Also, the commodity index gained 1.89% week-on-week on positive price movements. The Banking sector followed closely, rising 3.06%, driven by gains in FIDELITYBK, ACCESSCORP, GTCO and ZENITHBANK.
The broad-based advance across major banking stocks suggests sustained investor interest in financial stocks following the recent shift in the monetary policy environment.
The Industrial Goods sector advanced 1.56%, supported by buying interest in CUTIX, AUSTINLAZ and DANGCEM. The gains indicate renewed positioning in selected industrial names as investors reassess equities amid changing interest-rate expectations.
Meanwhile, the Consumer Goods sector edged up 0.62%, with gains in NASCON, CADBURY and HONYFLOUR supporting the sector despite relatively subdued performance.
Conversely, the Insurance sector declined 0.51%, weighed down by losses in MBENEFIT and MANSARD, which more than offset the gain recorded by FTGINSURE.
On the gainers’ chart, CMFC emerged as the week’s best-performing stock, appreciating by 59.8%. THOMASWY followed with a 28.3% gain, while UPDC, OMATEK, and FTGINSURE advanced by 24.2%, 23.3%, and 21.2%, respectively.
On the decliners’ chart, TRANSPOWER recorded the steepest decline, shedding 18.9% during the week. JOHNHOLT also declined by 18.9%, while ELLAHLAKES, LIVINGTRUST, and HMCALL fell by 18.1%, 17.5%, and 16.7%, respectively.
Going forward, Cowry Asset Limited said it expects the equities market to remain cautiously positive, supported by sustained demand for fundamentally strong stocks and continued interest in the Banking and Oil/Gas sectors.
However, the negative market breadth and mixed trading activity suggest that investors may remain selective in the near term.
“We expect market sentiment to be influenced by corporate earnings, macroeconomic developments, and sector-specific catalysts, while profit-taking could moderate further gains following the market’s strong year-to-date performance”, Cowry Asset Limited said in its market update. Market Cap Slips as Nigerian Exchange Halts 2-Week Rally
