Equities Investors See N609 billion Gain on Nigerian Exchange
Equities investors on the Nigerian Exchange (NGX) trading platform gained about N609 billion last week in the local bourse. The market ended the week with investors picking stocks with upside potential amidst Christmas celebrations. The local bourse keeps the trajectory uptrend, delivering a 0.99% week-on-week gain after consolidating on previous bullish play.
Hence, the benchmark All-Share Index (ASI) advanced to 102,133.30 points, remaining firmly above the 102,000-point threshold.
This performance was bolstered by strong buying interest across key sectors, Cowry Asset Limited said, a reflection of growing investor confidence driven by year-end window-dressing activities and the optimistic post-Christmas equity market sentiment.
Overall, the equities market capitalisation of the Nigerian Exchange grew by N608.74 billion to close at N61.91 trillion. Stockbrokers said the increase underscores the favourable market sentiment and robust demand for Nigerian equities, as highlighted by the rising Money Flow Index (MFI).
Investor optimism was further evidenced by the impressive market breadth, with 64 gainers surpassing 20 losers in a shortened trading week, Cowry Asset Limited told investors in a note.
Due to the rallies, the year-to-date return improved significantly to an impressive 36.6%. Despite these gains, market activity was somewhat muted, as participants focused on portfolio rebalancing and adjustments ahead of the final trading days of 2024.
Data from the Nigerian Exchange shows the total weekly traded volume fell by 43.16% to 1.39 billion units, while the value of transactions dropped by 41.42% to N52.02 billion.
The average number of weekly deals also declined, with 33,410 transactions recorded, representing a 32.12% reduction compared to the previous week. The market report revealed that sectoral performance remained predominantly positive, with four of the five major indices closing in the green.
The Insurance Index led the charge, surging by 7.87% week-on-week due to strong buy-side interest in counters such as UNIVERSAL INSURANCE, ROYALEX, PRESTIGE, and SUNU ASSURANCE.
The Consumer Goods Index followed closely, advancing by 3.13%, driven by bullish sentiment around PZ Cussons and IKEJA HOTEL. The Banking and Industrial Goods indices also posted gains of 1.97% and 0.09%, respectively, buoyed by demand for stocks like FIDELITY BANK, STERLING BANK, MAYBAKER, CUTIX, and STANBIC.
Conversely, the Oil & Gas Index was the sole laggard, recording a marginal decline of 0.12%, largely due to profit-taking activities in ARADEL, ETERNA, and OANDO. Highlighting individual stock performance, IKEJA HOTEL emerged as the best-performing stock, appreciating by 32.8%.
It was followed by MULTIVERSE, which gained 32.6%, PZ Cussons with a 26.1% increase, UNIVERSAL INSURANCE at 25%, and ROYALEX, which rose by 24.7%.
On the flip side, THOMAS WYATT (-10%), ARADEL (-9.6%), AUSTIN LAZ (-9.3%), DAAR COMMUNICATIONS (-6.5%), and NEIMETH (-5%) were the week’s laggards, reflecting profit-taking and subdued interest in these counters.
Looking ahead, Cowry Asset Limited stated that the Nigerian equities market is expected to maintain its upward trajectory as investors continue to position themselves in fundamentally strong stocks with significant growth potential.
Stockbrokers hint that year-end window-dressing activities and preparations for the new trading year are anticipated to provide additional support to market momentum. With favourable market internals and attractive valuations, the domestic equities market appears well-positioned for further growth in the coming weeks. CBN Opens FX Window for BDC to Stock up at NFEM Rate
