Equities Investors Gain N3.2rn as Royal Exchange, Champion Rally
The Nigerian Exchange (NGX) market capitalisation expanded by N3.2 trillion over the last five trading sessions as Royal Exchange and Champion Breweries topped the weekly rally.
Market reports reviewed confirmed that the Nigerian equities market closed the week on a positive note, supported by renewed buying interest across selected counters.
The benchmark NGX All-Share Index (ASI) rose by 2.36% week-on-week (WoW) to close at 246,992.44 points, while market capitalisation increased by approximately N3.72 trillion to N159.54 trillion.
Consequently, the market’s year-to-date (YTD) return improved to 58.72%. The week’s positive performance was largely driven by improved investor sentiment following confirmation of the FTSE Russell reclassification, alongside sustained buying pressure across selected counters.
Lagos-based investment firm Cowry Asset Management Limited said the combination of broad-based gains, stronger trading activity, and renewed demand for equities supported the market’s continued upward trajectory during the week.
Stock analysts said that despite the positive close in the week, market breadth remained positive, with 55 gainers and 35 losers, yielding a breadth ratio of 1.57x.
The positive breadth reflects improved investor sentiment, as advancing stocks significantly outnumbered declining counters during the week, data from the NGX revealed.
Trading activity also strengthened across the major market indicators, with the number of deals, trading volume, and transaction value increasing by 28.69%, 73.93%, and 70.73% WoW, respectively.
In total, investors exchanged 4.36 billion shares, valued at N210.63 billion, across 223,718 trades. Sectoral performance was broadly positive during the week, with four of the five tracked sectors closing higher, while Industrial Goods was the sole decliner.
The broad-based gains reflected improved investor sentiment and renewed buying interest across selected counters, particularly in the Oil & Gas, Consumer Goods and Insurance sectors.
The Oil & Gas sector led the gainers, surging 9.10%, driven by strong buying interest in OANDO, SEPLAT and ARADEL. The sector’s strong showing reflected sustained investor appetite for energy stocks, supported by renewed interest in major sector constituents.
The Consumer Goods sector advanced 4.47%, underpinned by renewed investor confidence in CHAMPION, NB and MCNICHOLS. The gains suggest improved positioning in selected consumer stocks following recent weakness in the sector. Similarly, the Insurance sector gained 3.85%, buoyed by significant demand for ROYALEX, WAPIC and SUNUASSUR. The broad-based gains across insurance counters point to renewed speculative and bargain-hunting interest in the sector.
The Banking sector also rose 3.58%, anchored by gains in ETI, FCMB, ZENITHBANK and FIDELITYBK. Continued interest in banking stocks was supported by their relatively strong earnings outlook and the sector’s dominant position in market capitalisation.
Conversely, the Industrial Goods sector declined 0.35%, weighed down by profit-taking in BETAGLAS, BUACEMENT and CUTIX.
The modest decline suggests that selling pressure remained concentrated in specific counters rather than reflecting a broad deterioration in sentiment towards the sector.
On the gainers’ chart, ROYEALEX emerged as the week’s best-performing stock, appreciating by 25.0%. CHAMPION followed with a 20.1% gain, while NB, WAPIC, and MCNICHOLS advanced by 18.8%, 17.1%, and 16.7%, respectively.
The strong performance across these counters reflected sustained buying interest in selected large-, mid-, and small-cap equities, providing further support to the broader market.
On the decliners’ chart, BETAGLAS recorded the steepest decline, shedding 17.4% during the week. NASCON followed with a 15.9% decline, while REDSTAREX, RTBRISCOE, and UPL fell by 13.6%, 13.2%, and 12.3%, respectively.
Stock analysts and wealth managers at Cowry Asset Limited expect a cautiously bullish outlook for the Nigerian equities market, supported by renewed buying interest and positive investor sentiment following confirmation of Nigeria’s reclassification by FTSE Russell.
The firm anticipated that, given the market’s strong YTD performance, some profit-taking and short-term volatility may emerge. We expect investors to remain selective, focusing on fundamentally strong and liquid counters, particularly large- and mid-cap stocks.
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