Equities Investors Gain N1.25T as NGX Rerates Insurance Stocks
The Nigerian Exchange (NGX) grew by N1.25 trillion during a short trading session in a rally boosted by demand for insurance stocks. The market opened positively with the All-Share Index (ASI) recording a strong 1.42% week-on-week gain to close at 103,586.33 points.
This remarkable start to the year reflects renewed investor confidence and optimism, driven by heightened position-taking in stocks with robust fundamentals, Cowry Asset Limited said in a note.
Stockbrokers explained that the market’s upbeat tone builds on its impressive performance in 2024, during which it achieved a 38% annual gain. The rally was primarily supported by significant buying interest across key sectors, notably the insurance and consumer goods sectors.
According to Cowry Asset Limited, equities investors positioned themselves strategically ahead of potential earnings growth and anticipated interim dividend announcements for 2024. The NGX market cap climbed by 2.02% to close at N63.17 trillion on Friday, adding an impressive N1.25 trillion in value in over gaining streaks.
Stockbrokers stated that mid- to large-cap stocks were particularly instrumental in driving this performance, reflecting their strong demand.
Trading activities were vibrant as the market entered the New Year, with weekly traded volume and value surging by 88.8% and 34.1%, respectively, to 2.62 billion shares valued at N69.74 billion. These transactions were executed through 47,953 trades, representing a 43.5% increase from the previous week, stockbrokers said.
Sectoral performance painted a broadly positive picture, with four of the five major indices under review closing higher. The insurance sector emerged as the standout performer, surging by an impressive 26.91%, supported by strong price appreciation in stocks such as PRESTIGE, SOVRENINS, and CORONATION.
The consumer goods, banking, and industrial goods indices also recorded gains of 2.16%, 0.58%, and 0.5%, respectively, driven by positive sentiment in stocks like TANTALIZER, MULTIVERSE, HONYFLOUR, STERLING, and WEMABANK.
Conversely, the Oil and Gas index was the only laggard, slipping by 0.45% week on week due to sell-offs in TOTAL, ETERNA, and OANDO. The top-performing stocks for the week included PRESTIGE (+46%), NEIMETH (+45.3%), SOVRENINS (+45.2%), CORONATION (+44.9%), and UNIVERSAL INSURANCE (+43.6%).
On the flip side, the worst performers were PZ CUSSONS (-13.8%), CWG (-10.8%), UNIONDICON (-10%), NGXGROUP (-9.2%), and CADBURY (-6.5%). This robust start to 2025 underscores the growing appeal of the Nigerian Exchange as a hub for portfolio diversification, according to Cowry Asset Limited.
Stockbrokers said sectors such as insurance, banking, consumer goods, and industrial goods saw notable investor interest, with a focus on stocks poised to deliver substantial returns in the near term. Looking ahead, market sentiment remains bullish, although some profit-taking could moderate gains in the short term.
Overall, the outlook for 2025 is optimistic, with expectations of sustained investor confidence and market resilience, stockbrokers stated. #Equities Investors Gain N1.25T as NGX Rerates Insurance Stocks Naira Rises as Gross External Reserves Hits 3-Year High
