NGX Grows as Investors Portfolio Value Rises by N794bn
The Nigerian Exchange (NGX) market capitalisation grew as equities investors gained more than N794 billion. The local bourse witnessed a remarkable turnaround in the just-concluded week as the benchmark index recorded significant appreciation.
The All-Share Index advanced by 1.22% week-on-week to close at 103,598.30 points. Stockbrokers said the upward trajectory was buoyed by strong investor sentiment in anticipation of fourth-quarter earnings releases and the ongoing adjustments in portfolio rebalancing.
In a note, Cowry Asset Limited said these factors have begun to shape investor expectations for the end-of-year financial performance of listed companies. The surge in market cap was driven by increased trading activities and the supplementary listing of LASACO Assurance’s 9.25 billion ordinary shares on the exchange.
As a results, equities investors’ portfolios increased by N794.22 billion week on week to N63.65 trillion on Friday. Stockbrokers witnessed three positive sessions out of five. According to stockbrokers, trading activities showed considerable improvement, with heightened investor interest reflected in the total traded volume and value.
Trading volume and value surged by 35.70% and 27.88%, respectively, reaching 3.06 billion units and N75.24 billion, compared to the 2.25 billion units and N58.83 billion recorded in the previous week.
However, the number of trades fell by 7.25% to 59,036 deals. Sectoral performance during the week was mixed, as three of the six tracked sectors recorded gains while the remaining three closed in the red.
The banking index emerged as the best-performing sector, with a 4.09% week-on-week increase, driven by gains in key banking stocks such as Fidelity Bank (FIDELITYBNK) and United Bank for Africa (UBA).
The newly introduced NGX-Commodity Index also posted a 1.03% gain, while the Industrial Index edged higher by 0.12%, supported by price appreciation in stocks like RT Briscoe (RTBRISCOE), CAP Plc (CAP), and Transcorp Power (TRANSPOWER).
Conversely, the insurance index led the decliners with a 1.30% drop, followed by the consumer goods and oil/gas indices, which fell by 1.20% and 0.75%, respectively.
Cowry Asset Limited said these declines were largely driven by sell-offs in stocks such as SUNU Assurances (SUNUASSUR), Cornerstone Insurance (CORNERSTONE), Honeywell Flour Mills (HONYFLOUR), Dangote Sugar Refinery (DANGSUGAR), Aradel Holdings (ARADEL), and Eterna Oil (ETERNA).
At the stock level, notable gainers for the week included SCOA Plc, which surged by 59.7%, followed by UPDC Plc (19%), Wapic Insurance (15.3%), Royal Exchange (14.6%), and Daar Communications (13.5%). These stocks garnered significant investor interest and delivered impressive returns during the period.
On the other hand, SUNU Assurances topped the losers’ chart with a 25.1% decline, trailed by Eunisell Interlinked (19%), John Holt Plc (18.5%), Abbey Building Society (14.6%), and Cornerstone Insurance (14.3%).
These losses were largely driven by negative price movements and investor sell-offs. Looking ahead, Cowry Asset Limited said the current positive market sentiment is expected to persist into the coming week, supported by the release of corporate earnings and anticipated corporate actions.
Stockbrokers said the results published so far have been encouraging, providing a foundation for sustained price support and attracting fresh capital inflows into the market. “The prevailing low valuation of many stocks continues to create opportunities for investors to buy into value and strategically reposition their portfolios.
“However, the market may experience bouts of volatility as the earnings season progresses. Mixed macroeconomic data and upcoming economic events are likely to influence market sentiment, particularly for companies with December yearend financials’, Cowry Asset said in its note. #NGX Grows as Investors Portfolio Value Rises by N794bn Chinese Firm Expresses Support for $20b Ogidigben Gas Project
