Market Wrap: Nigerian Exchange Expands by N1.81trn to N85.06trn
The Nigerian Exchange (NGX) expanded by N1.81 trillion to close at N85.06 trillion week on week due to sustained bargain hunting in the local bourse. Stock market activities surge as investors’ confidence remained strong across key sectoral indexes, lifting year-to-date return above 30%
The domestic equities market sustained its bullish momentum as investors doubled down on risk assets, largely buoyed by robust corporate earnings and declining yields in the fixed income and money markets.
Investment analysts at Cowry Asset Limited said the sharp drop in Treasury bill yields at the midweek Primary Market Auction prompted a wave of portfolio reassessments, particularly in light of the Monetary Policy Committee’s decision to maintain the status quo on all policy parameters.
At the close of the trading session. The All Share Index advanced by 2.18% week-on-week, closing at 134,452.93 points, reflecting a strong wave of investor confidence and fresh buy-side activity across the board.
In lockstep, market capitalisation added N1.81 trillion, or 2.18%, to settle at N85.06 trillion, pushing the year-to-date return to 30.63%. Market breadth remained positive at 1.40x, underscoring the broad-based optimism as 60 stocks recorded gains against 43 decliners across the five trading sessions—one more than the prior four-day week.
Stockbrokers reported that activity levels saw a sharp contraction, with the volume and value of trades plunging by 78.96% and 77.65% week-on-week, respectively. Total traded volume stood at 3.68 billion units, while turnover came in at N111.90 billion, down from 17.49 billion units and N500.76 billion in the preceding week.
The significant drop in market activity suggests a cautious recalibration by institutional investors and portfolio managers ahead of month-end positioning, Cowry Asset Limited analysts said.
Sectoral performance was broadly bullish, with all six key indices closing in positive territory. The Industrial and Insurance indices led the pack, posting week-on-week gains of 4.66% and 3.07%, respectively.
The surge was driven by price appreciations in INTENEGINS, SOVRENINS, JBERGER, LAFARGE AFRICA, and BUA CEMENT. The Consumer Goods Index followed with a 2.81% uptick, while the Commodity Index rose by 2.24%.
The Banking and Oil & Gas indices also recorded moderate gains of 1.84% and 0.87%, respectively, buoyed by buying interest in WEMABANK, OANDO, PRESCO, DANGOTE SUGAR, GUINNESS, and OKOMUOIL. On the performance chart, The Initiate Plc topped the gainers’ list with a 60.8% increase, followed by ACADEMY (+33.0%), ENAMELWA (+32.7%), WEMABANK (+23.6%), and PRESCO (+22.5%).
Conversely, NSLTECH (-24.0%), OMATEK (-23.9%), MEYER (-21.4%), NEIMETH (-19.3%), and ABCTRANS (-18.8%) were the worst performers for the week. Looking ahead, Cowry Asset Limited expects a mixed performance in the coming week, shaped by the ongoing release of corporate earnings and typical month-end window dressing activities.
“While some profit-taking may emerge, we anticipate continued interest in fundamentally strong counters, particularly as investors respond to the MPC’s decision and shifting yield dynamics across asset classes,” the investment firm said. # Market Wrap: Nigerian Exchange Expands by N1.81trn to N85.06trn Airtel Africa Grows Profit by 408% as Data Revenue Spikes
