Equity Investors Gain N2.82trn, NGX Market Cap, Return Surge
The Nigerian Exchange (NGX) year-to-date return settled at 41.61% as a N2.84 trillion gain over four out of five trading sessions boosted market capitalisation. The local bourse recorded another remarkable performance, climbing to fresh record levels amid strong bullish sentiment across key sectors.
Stockbrokers reported that the rally was largely propelled by investors’ interest in insurance, industrial, and consumer goods stocks, following the official signing of the Nigerian Insurance Act into law.
This development served as a significant market catalyst, according to Cowry Asset Limited, enabling market players to reassess their holdings and adjust their portfolios in line with evolving sector dynamics and macroeconomic indicators.
Hence, the market index, or All-Share Index, advanced by 3.18% week-on-week to close at 145,754.91 points, having touched a fresh high of 146,570.71 points during the week.
Trading data showed that market capitalisation surged by N2.84 trillion to reach N92.21 trillion, bringing the year-to-date return to an impressive 41.61%. Investor sentiment remained largely positive throughout the week, as reflected in the market breadth which showed 66 gainers against 41 decliners.
Market activity was somewhat mixed, stockbrokers said in their separate notes. The total volume of transactions recorded a significant spike of 79.8% week-on- week to 8.72 billion units, suggesting increased retail and institutional participation in key tickers.
However, total market value traded declined by 10.5% to N134.04 billion, which may indicate a shift in focus towards lower-priced or mid-cap stocks.
Investment firm Cowry Asset Limited said the number of deals executed rose modestly by 3.24% to 179,908 compared to the previous week. Sectoral performance was broadly positive, with four of the six sectors under coverage closing the week in the green.
The Insurance sector emerged as the top performer, surging by an eye-catching 41% week-on-week, driven by investor optimism surrounding the sector’s growth prospects.
Investors reacted positively to the enactment of the new Insurance Act, which has sparked expectations of recapitalisation and regulatory reforms. Top performers: Mutual Benefits Assurance, AIICO Insurance, ROYALEX, SOVRENINS, and CORNERSTONE were at the forefront of the rally, each posting weekly gains above 50%.
The Industrial Goods sector also performed strongly, appreciating by 8.73% on the back of gains in large-cap stocks such as Dangote Cement and BUA Cement. The Consumer Goods index followed closely, rising by 8.27% week-on-week, largely supported by upward movements in stocks like BUA Foods, GUINNESS, and ELLAH LAKES.
The Oil & Gas sector posted a modest 0.17% gain, with support from counters such as OANDO and JAPAULGOLD. In contrast, the commodities and banking sectors came under pressure, declining by 2.33% and 0.75%, respectively.
The losses in these sectors were driven by sell-offs in names like TOTAL, PRESCO, ZENITHBANK, FIDELITYBANK, and ACCESSCORP, suggesting some investors are taking profits.
Mutual Benefits Assurance gained 60.4%, AIICO Insurance rose by 59.8%, ROYALEX climbed by 59.3%, SOVRENINS inched up by 59.1%, and CORNERSTONE appreciated by 54.5%.
On the flip side, the worst-performing stocks were LIVINGTRUST, which declined by 24.1%; ACADEMY, down by 18.2%, TIP shedding 12.7%; UPDCREIT, dropping 11.8%; and LEGENDINT, falling by 11.7%.
“We anticipate a mixed performance in the equities market as bulls and bears continue to contest market direction. However, the prevailing sentiment remains broadly optimistic, with investors likely to sustain their focus on fundamentally strong sectors, particularly insurance, consumer goods, and select industrial tickers.
“The market is also expected to witness further portfolio rotations as investors reposition based on evolving sectoral opportunities, corporate earnings expectations, and macroeconomic cues.
“The insurance sector in particular is expected to remain in focus, given its reform-driven outlook and recent price momentum,” market analysts at Cowry Asset Limited told investors. #Equity Investors Gain N2.82trn, NGX Market Cap, Return Surge #GTCO Drops Hints on Earnings Release, Interim Dividend
