Equities Investors Gain N835bn in 5-Day on Nigerian Exchange
Equities investors gained N835 billion in 5 days on the Nigerian Exchange trading platform due to buy side activities. Due to investors’ interest in banking, oil, and gas names, the equities market bullish performance extended to the third week straight.
Other key sectors except the consumer goods index supported the momentum. In its market update, Cowry Asset Limited revealed that investors pocketed a total gain of N835 billion on the back of favourable sentiment and strong liquidity inflows.
Stockbrokers said the positive performance, underpinned by increased investor confidence and active buying interest, highlights an optimistic outlook on the country’s economic fundamentals and key market indicators.
Over the trading week, market participants engaged in strategic investments, boosting the Nigerian Exchange (NGX) All-Share Index by 1.41% to reach 99,448.91 points, the investment firm said.
There was heightened buying interest in financial and oil & gas stocks as liquidity continued to flow steadily into the market.
This capital injection not only lifted the market capitalisation above N60 trillion to close at N60.26 trillion but also pushed the index’s year-to-date return to a robust 33.0%, Cowry Asset Limited told investors in its note.
In the market, a total of 57 stocks advanced compared to 19 lagging behind, a trend bolstered by rebalancing and position-taking activities across small, mid, and large-cap stocks, according to stockbrokers.
The value of trades conducted on NGX increased by 16.3% to N85.95 billion. Also, total volume traded volumes bucked last week’s trend, up by 48.03% to 2.14 billion shares executed across 41,217 deals—a 4.23% rise from the previous week.
Cowry Asset Limited stated that sectoral performance was overwhelmingly positive, with gains seen across all major indices except the NGX Consumer Goods Index, which declined by 0.84%.
Consumer index dipped due to price declines by DANGSUGAR, FTNCOCOA, NNFM, and INTERNATIONAL BREWERIES.
However, the banking index emerged as the week’s top performer, posting a 7.86% week-on-week increase, buoyed by strong investor sentiment in banking heavyweight.
UBA, FBNH, ACCESSCORP, and STANBIC saw a significant price appreciation that boosted banking index.
Stockbrokers said the positive sentiment follows the release of robust nine-month earnings from banks, providing investors with encouraging insights for year-end expectations.
Also, the Insurance Index rose by 4.04% due to positive movements in WAPIC INSURANCE, LASACO, and GUINEA INSURANCE.
The Oil & Gas Index also recorded a solid 3.95% gain, led by SEPLAT after the Ministry of Petroleum granted the company clearance to acquire Mobil Producing Nigeria Unlimited (MPNU).
The Industrial Index posted a mild gain of 0.1%, thanks to upward price trends in UPDC and LAFARGE.
The top weekly advancers included EUNISELL (+21%), UBA (+19%), UNILEVER (+18%), ABBEYBDS (+17%), and CORONATION (+16%), showcasing significant appeal among equity investors.
Conversely, DANGSUGAR (-10%), SCOA (-10%), JOHNHOLT (- 10%), NSLTECH (-10%), and REGALINS (-8%) were the top decliners for the week.
Cowry Research points out that the recent positive quarterly corporate earnings reports have further buoyed market sentiment, particularly in the banking, industrial goods, and consumer goods sectors —delivering strong performances from key players and driving the benchmark index closer to the 100,000-point psychological threshold.
“We think the current rally is likely to persist, though cautious profit-taking activities may create intermittent dips.
“Looking ahead, we see the local bourse poised for further gains as investors look forward to the upcoming macroeconomic data releases and corporate earnings reports, which are anticipated to influence short-term trading dynamics,” Cowry Asset Limited said. #Equities Investors Gain N835bn in 5-Day on Nigerian Exchange
