Nigerian Exchange Surges by N2.2trn to N163.80trn, Return Tops 62%
The Nigerian Exchange (NGX) surged by N2.2 trillion to close at N163.80 trillion as investor sentiment improved over the last five trading sessions.
The local bourse staged a convincing recovery, reversing the previous week’s losses as renewed bargain-hunting and selective accumulation across the Insurance, Oil & Gas, Industrial Goods and Commodity sectors lifted the benchmark index.
According to Cowry Asset Limited, the rebound suggests improved investor risk appetite after the recent market pullback, with investors taking advantage of relatively attractive entry points in selected counters.
The NGX All-Share Index (ASI) advanced by 1.36% week-on-week (WoW) to close at 252,755.29 points, while market capitalisation increased by the same margin to N163.80trn.
The recovery delivered a N2.20 trillion gain for investors, pushing the market’s year-to-date (YtD) return to 62.11% and reinforcing the NGX’s position as a strong-performing investment destination despite intermittent profit-taking and sectoral rotations.
Market breadth also improved to 1.10x, with 43 gainers against 39 decliners, indicating a return to positive market sentiment, although the relatively narrow breadth suggests that the recovery was not entirely broad-based.
Trading activity was mixed, with total volume traded surging 183.61% WoW to 8.02 billion shares from 2.83 billion shares the previous week. However, transaction value fell 11.17% to N185.21 billion from N208.51 billion, with 160,745 deals executed.
The divergence between traded volume and transaction value suggests that increased activity was largely concentrated in relatively lower-priced stocks, rather than reflecting a corresponding increase in institutional-sized transactions or broad-based accumulation in higher-capitalisation counters.
Nevertheless, the higher volume points to improved market participation and renewed interest in selected stocks, although the decline in transaction value indicates that investors remained measured in their deployment of capital.
Sectoral performance was largely positive, with four of the six indices under review closing higher, reflecting improved demand across key market segments
The NGX Industrial Goods Index led the advance, up 6.11% WoW on renewed buying interest in DANGCEM, CAVERTON, HBM Nigeria, and CUTIX.
The sector’s performance reflects sustained investor interest in selected industrial counters, particularly as market participants reassess earnings prospects, pricing power, and the potential benefits of an improving macroeconomic environment.
The Insurance Index followed, gaining 4.44% on gains in MANSARD, VERITASKAP, LASACO and SOVRENINS, while the Oil & Gas Index advanced 2.25% on gains in ETERNA and SEPLAT.
Similarly, the Commodity Index appreciated by 1.22%, buoyed by buying interest in OANDO and JAPAULGOLD. On the downside, the Consumer Goods Index fell 0.55% as losses in NASCON, ZICHIS, INTBREW, HMCALL and VITAFOAM outweighed gains in CHAMPION and HONYFLOUR.
The Banking Index also shed 0.21%, pressured by losses in JAIZBANK, FIRSTHOLDCO, STERLING and ZENITHBANK, suggesting demand for banking stocks moderated after their previous market performances.
At the stock level, CHAMPION emerged as the week’s best performer, up 27.3% after its restructuring announcement, which appears to have stimulated renewed investor interest in the counter.
CAVERTON (+20.5%), MANSARD (+16.1%), OANDO (+14.8%), and VERITASKAP (+14.7%) rounded out the top five gainers, reflecting strong demand across industrial, insurance, and energy-related stocks.
Conversely, LIVINTRUST led the decliners, down 18.5%, followed by THOMASWY (-12.3%), OKOMUOIL (-10.9%), NAHCO (-10.0%), and ENAMELWA (-10.0%).
Looking ahead, Cowry Asset Limited expects positive sentiment and selective position-taking to persist, though the recovery’s sustainability will depend on corporate earnings releases, dividend expectations, macroeconomic developments, prevailing interest-rate conditions, and foreign portfolio flows.
With attractive yields still available in the fixed-income market, investors are likely to maintain a selective approach, favouring fundamentally sound stocks with strong earnings visibility, sustainable dividend prospects and compelling valuations. Nigeria Eurobonds Yields Ease as Offshore Investors Buy Dollar Debt
