NGX Index Gains 0.27% as Earnings, Dividend Drive Sentiment
The Nigerian Exchange (NGX) all-share index rose by 0.27% week on week due to increasing bargain-hunting activities in the local bourse. Investor sentiment turned increasingly positive, fueled by strong first-quarter 2025 earnings results as companies began to shake off the negative effects on earnings.
Data from the Nigerian Exchange showed that the All-Share Index rose by 0.27% week-on-week to close at 106,042.57 points. Stockbrokers said this uptick was largely driven by strong buy-side activity, particularly within the consumer goods sector, in reaction to strong earnings and the latest round of dividend payments.
In line with the index movement, the overall market capitalisation increased by 0.28% to N66.65 trillion, reflecting the underlying confidence in the equities market.
The bourse recorded a healthier breadth this week, with 52 stocks appreciating in value compared to 36 decliners, bringing the market breadth ratio to a solid 1.44 times.
Cowry Asset Limited said this positive breadth, combined with sustained demand in select large and mid-cap stocks, pushed the year-to-date return of the NGX higher to 3.03%, reaffirming the bullish undertone of the market.
Trading activity was notably upbeat throughout the week. The total number of deals executed surged by 36.86% week-on-week to 70,329 deals, signalling increased participation by both institutional and retail investors.
In terms of volume, the market recorded a significant 18.63% increase to 2.19 billion units traded.
Similarly, the value of transactions climbed 34.60% from the previous week to settle at N75.41 billion, reflecting renewed investor appetite and a shift toward higher-value trades.
However, a deeper look at sectoral performance revealed a mixed picture. Out of the six key sectors tracked during the week, four closed in negative territory while only two posted gains.
The oil and gas sector led the laggards, shedding 2.90% following price declines in key stocks such as ARADEL.
The insurance sector followed closely with a weekly loss of 2.89%, reflecting negative sentiment around stocks like LINKASSURE, GUINEAINS, and SUNUASSURE.
The commodities index also dipped by 1.12%, while the banking sector lost 0.38%, weighed down by losses in ACCESSCORP and ETI. On the brighter side, the consumer goods sector emerged as the best performer for the week, recording a solid gain of 2.89%.
This was primarily driven by impressive price advances in counters such as FIDSON, CADBURY, and MAYBAKER, as investors rotated into names with promising earnings outlooks, according to Cowry Asset Limited.
The industrial goods sector also managed to close the week in positive territory with a modest gain of 0.40%, buoyed by strength in stocks like CAVERTON, UPDC and BETAGLASS.
Stockbrokers stated that among individual stocks, some names stood out for their remarkable weekly performances. LEGEND INTERNET topped the gainers’ chart with an impressive 45.6% return, followed closely by ABCTRANS, which gained 44.9%.
Other notable gainers included FIDSON with 22.8%, UPL with 20.9%, and NAHCO with 20.2%, all reflecting strong investor interest and positive sentiment.
On the other hand, the worst-performing stocks included ETI, which lost 18.8%; MULTIVERSE, with a decline of 18.6%; LIVESTOCK, down by 10.6%; ARADEL, shedding 9.9%; and TRIPPLE GEE, which dipped 9.6% during the week.
Looking ahead to the coming week, Cowry Asset analysts maintained a positive outlook on the NGX. “We expect the market to benefit from continued momentum in the earnings season, as investors digest more corporate results and take positions in dividend-paying stocks”.
The investment firm said the prevailing optimism is likely to be further bolstered by any economic data releases or policy signals from economic managers, which could provide additional direction to market participants.
“Given the current dynamics, we encourage investors to maintain a selective buying strategy, focusing on fundamentally sound equities with strong earnings potential and resilient business models”, Cowry Asset Limited advised. #NGX Index Gains 0.27% as Earnings, Dividend Drive Sentiment Naira Appreciates as CBN Sells Additional Dollars in FX Market
