Equities Investors Gain N1.43T as Market Enters Overbought Side
Equities investors recorded N1.43 trillion as net wealth gain in the Nigerian Exchange (NGX) trading platform amidst divergent trading sessions. Transactions closed positive for three straight days and closed negative for the last two trading sessions due to market corrections.
The Nigerian Exchange All Share Index beat the 121,000 psychological mark for the first time, according to stockbrokers, pushing key performance indicators northward.
The local bourse experienced significant buying interest across several large-, mid, and small-cap stocks, particularly within the Banking, consumer goods, commodities, and agriculture sectors. Hence, market index rose by 1.57% week-on-week, closing at 119,995.76 points, after touching a historic intraday high of 121,257.69 points during the week.
Stock market capitalisation advanced to N75.96 trillion as investors portfolio value surged by N1.43 trillion week on week on strong rally. This was supported in part by the listing of an additional 2,944,772,083 ordinary shares by Stanbic IBTC Holdings Plc, which increased its total issued and fully paid-up shares.
With this performance, the year-to-date return of the NGX advanced to 16.58%, and investors saw a net wealth gain of N1.43 trillion during the week. Investor sentiment remained positive, reflected in the market breadth, which stood at 3.27x—indicating 72 stocks posted gains while 22 recorded losses.
Trading activity showed mixed performance. Total volumes traded for the week grew by 13.83% to 3.87 billion units. However, the total value of transactions fell marginally by 6.55% to N101.59 billion.
These trades were executed across a total of 113,953 deals, suggesting that while investor participation remained active, there was a slight pullback in capital flow, according to Cowry Asset Limited.
Citing data from the local bourse, stockbrokers at Cowry Asset Limited said performance across the sectoral coverage was largely bullish, except in the Oil and Gas space. The Oil & Gas Index dipped by 2.23% week-on-week, with pressure stemming mainly from declines in OANDO and ARADEL.
In contrast, the industrial goods sector led the gains, rising by 3.92%, followed by the Consumer Goods sector which advanced by 3.73%. The Insurance sector also performed well, up 3.67%, while the banking index gained 2.59%. The Commodities index had a quieter but positive week, improving by 1.46%.
Several equities contributed meaningfully to the week’s gains, including NEIMETH Pharmaceuticals, ELLAH LAKES, CHAMPION Breweries, BETAGLASS, GUINEA INSURANCE, and UPDC.
Others include SOVEREIGN INSURANCE, ZENITH BANK, OKOMU OIL, PRESCO, NNFM, WEMA BANK, and BUA CEMENT. “These stocks saw strong price appreciation as investor interest grew”, Cowry Asset Limited emphasized.
Among the top-performing names during the week were NEIMETH, which rallied by 60.5%; ELLAH LAKES with a gain of 31.3%, INTERNATIONAL BREWERIES which appreciated by 26.4%, CWG which rose by 25%, and CHAMPION which climbed 22%.
On the flip side, the worst-performing stocks were MULTIVERSE and ABCTRANS, both down by 9.3%, followed by OANDO which dropped by 7.4%, BUAFOODS by 6.5%, and DAAR Communications, which declined by 6.2%.
Looking ahead, Cowry Asset Limited expects the coming week to be somewhat cautious. “With the market appearing to be in overbought territory, there could be mild profit-taking, particularly in some of the large-cap stocks.
“This pullback, however, may be a healthy one, as it could help the market consolidate recent gains and build strength for a possible further breakout. As the end of the second quarter approaches, we are also seeing signs of quarter-end window dressing and bargain hunting, especially as investors begin to anticipate earnings reports and policy signals from the Central Bank of Nigeria’s upcoming July meeting.
“Nevertheless, we continue to advise investors to focus on fundamentally sound stocks that offer long-term value and earnings resilience, especially amid the evolving macroeconomic environment”, the firm said. #Equities Investors Gain N1.43T as Market Enters Overbought Side Dangote Refinery to Debut on Stock Market by 2026
