Equities Investors See N77bn Gain as NGX Index Jumps

Equities Investors See N77bn Gain as NGX Index Jumps

Equities investors in the Nigerian Exchange (NGX) saw about N77 billion gain in the just concluded week. Due to bargain hunting spread over the trading sessions, the All-Share Index (ASI) edged up by 0.11% week-on-week to close at 97,829.02 points.

Also, market capitalisation increased by N76.9 billion during the week to close at N59.29 trillion. This marginal gain was achieved despite a significant pullback in the banking sector, driven by notable price declines in major banking stocks, Cowry Asset Limited said in a note. 

The market reported strong gains in large-cap stocks across the insurance, consumer goods, and industrial sectors, which offset profit-taking activities in banking equities.

The bullish play nudged the Nigerian bourse market capitalisation higher by 0.13% week-on-week to N59.29 trillion. Cowry Asset Limited noted that the expansion was primarily boosted by the addition of 3.12 billion ordinary shares of Haldane McCall to the main board of the exchange through a listing by introduction.

Details from the market showed that year-to-date (YTD) return climbed to 30.83%, trailing annual inflation rate of 33.88%. Given the trading direction observed, market breadth was positive, with a ratio of 1.55x, as 51 stocks advanced compared to 33 decliners.

Stockbrokers said investor sentiment reflected a mix of optimism and caution, shaped by the proposed 2025 budget of N47.90 trillion and anticipation of the Central Bank of Nigeria’s (CBN) Monetary Policy Committee (MPC) meeting, where interest rate direction is a focal point.

Trading activity declined in both the number of deals and trading volume, which fell by 7.74% and 24.08% week-on-week to 44,795 deals and 1.48 billion shares, respectively.

However, the value of transactions increased by 8.4% week-on-week to N38.88 billion, indicating selective but higher value trading, Cowry Asset Limited said.

Stockbrokers told investors in a note that the weekly gains were broad-based across most indices except for the Banking Index, which shed 2.57% week-on-week due to persistent sell-offs in key banking stocks, including FBN Holdings, Access Holdings, Sterling Financial, United Bank for Africa, and Guaranty Trust Holding Company.

Conversely, the Insurance Index led the sectoral performance with a 4.54% week-on-week gain, followed by the Consumer Goods Index (1.93%), Industrial Index (1.75%), and Oil & Gas Index (0.18%).

The gains were buoyed by significant price increases in stocks like EUNISELL, Tantalizer, Guinea Insurance, Dangote Sugar, Mansard Insurance, Lafarge Africa, and Japaul Gold.

Top weekly gained data showed EUNISELL topped the performers list with a 61% price uptick. Other top gainers for the week include: Tantalizer (57%), John Holt (43%), Austin Laz (34%), and Lafarge Africa (29%). 

On the flip side, MECURE (- 19%), Multiverse (-18%), PZ Cussons (-12%), University Press (-12%), and Northern Nigeria Flour Mills (NNFM) (-10%) recorded the most significant losses, reflecting profit-taking and weaker investor sentiment in these counters.

Cowry Research thinks the market is likely to trade in mixed directions as investors react to the anticipated decisions from the MPC, which will shape interest rate expectations and broader investment strategies in the new week. FX Reforms Improve Valuation Transparency, Foreign Investment—Issuing Houses