Investors Gain N4.57trn in Nigerian Stock Market in 5-Day
Investors in companies’ shares gained N4.57 trillion in the Nigerian stock market in 5 days, pushing the local exchange market capitalisation above N162 trillion.
The Nigerian Exchange (NGX) witnessed strong investor sentiment in stocks with strong fundamentals despite the ongoing initial public offering from Dangote Refinery. The market closed the week on a positive note, driven by renewed demand across selected counters.
The benchmark All-Share Index (ASI) rose 2.78% week-on-week (WoW) to close at 249,804.56 points, while market capitalisation increased to approximately N162.16 trillion.
Accordingly, the market’s year-to-date return surged to 60.53%. Market breadth remained firmly positive during the week, with 61 gainers against 39 losers, translating to a breadth ratio of 1.56x.
The strong breadth reflected improved investor sentiment, as advancing stocks significantly outnumbered declining counters. Trading activity was mixed across the major market indicators, Cowry Asset Management Limited said in a report.
Stockbrokers said that though trading volume declined by 11.33% week on week, both the number of deals and transaction value increased by 17.41% and 82.06% WoW, respectively.
In total, investors exchanged 3.23 billion shares, valued at N237.18 billion, across 287,892 deals, according to Cowry Asset Limited.
Market analysts reported that sectoral performance remained firmly positive during the week and reflected broad-based market participation, with gains across all tracked sectors.
The stronger performance of Banking and Insurance stocks suggests continued rotation into financial counters, while the relatively modest gain in Consumer Goods points to more selective buying within the sector.
The Banking sector rose 4.43%, supported by renewed buying interest in FIRSTHOLDCO, WEMABANK and ZENITHBANK. The sector’s strong performance highlights continued investor appetite for banking stocks amid sustained interest in major financial institutions.
The Insurance sector followed with a 4.79% gain, driven by significant advances in SOVRENINS, MBENEFIT and FTGINSURE. The broad-based buying across insurance counters provided further support to the sector following recent volatility.
The Oil & Gas sector advanced 3.71%, buoyed by gains in ARADEL and ETERNA. Positive sentiment towards selected energy stocks continued to support the sector, despite fluctuations in global crude prices.
Similarly, the Industrial Goods sector gained 3.12%, supported by renewed buying interest in BETAGLAS, BUACEMENT and AUSTINLAZ. The sector’s performance suggests improving investor positioning across selected industrial counters.
The Consumer Goods sector recorded the smallest gain, rising 0.52%, as gains in MCNICHOLS, CHAMPION and DANGSUGAR were partly offset by declines in CADBURY, HONYFLOUR and UNILEVER and the Commodity index gained 1.24% respectively
On the gainers’ chart, UPDCREIT emerged as the week’s best-performing stock, appreciating by 34.9%. SOVRENINS followed with a 31.0% gain, while MBENEFIT, NGXGROUP, and FIRSTHOLDCO advanced by 22.0%, 21.6%, and 17.6%, respectively.
On the decliners’ chart, TRANSPOWER recorded the steepest decline, shedding 18.9% during the week. JOHNHOLT also declined by 18.9%, while ELLAHLAKES, LIVONGTRUST, and OMATEK fell by 18.1%, 17.5%, and 12.4%, respectively.
Overall, the market’s positive performance was largely driven by strong investor sentiment, increased demand for selected stocks, and broad-based gains across all sectors, with the Banking sector serving as the primary catalyst for the week’s advance.
“We expect the Nigerian equities market to sustain its positive momentum in the near term, supported by renewed investor demand, broad-based sector gains, and continued interest in fundamentally strong stocks.
“However, the market may experience bouts of profit-taking following the strong year-to-date performance. Investors are therefore likely to remain selective, with attention focused on earnings prospects, valuations, dividend potential, and key market catalysts”, Cowry Asset said.
Investors Trade 3.25bn Shares Valued at N238bn in Nigerian Market
