NGX Indices Mixed as Sterling Financial Holdings Lists New Shares
The equities segment of the Nigerian Exchange (NGX) key performance indicators diverged due to the additional listing of Sterling Financial Holdings Plc, which shifted the indices’ positions.
The local bourse closed trading activities on a mixed note last week, with varying levels of buying interest across major counters shaping overall investor sentiment.
The benchmark NGX All-Share Index (ASI) declined by 0.14% week-on-week to close at 243,462.13 points, according to data obtained from the Nigerian bourse.
Stockbrokers at Cowry Asset Limited reported that despite the marginal decline in the index, market capitalisation increased by approximately N612 billion to N157.06 trillion, driven by the additional listing of 13.812 billion ordinary shares of the non-operating holding company of Sterling Bank.
Consequently, the market’s year-to-date return moderated slightly to 56.45%. Market breadth remained positive, with 43 gainers against 34 losers, resulting in a market breadth ratio of 1.26x.
Market analysts said this reflects sustained buying interest across a broad range of stocks, as advancing equities continued to outnumber decliners during the week.
Trading activity, however, softened, indicating relatively lower investor participation. The number of deals, trading volume, and transaction value declined by 10.01%, 22.73%, and 17.24% week-on-week, respectively.
Overall, investors traded 2.82 billion shares valued at N182.78 billion across 227,002 deals. Sectoral performance was mixed during the week, with the Banking, Consumer Goods, and Insurance indices posting gains, while the Industrial Goods and Oil & Gas sectors closed lower.
The Banking Index emerged as the week’s top performer, advancing 9.30% on renewed investor demand for banking stocks, particularly FIRSTHOLDCO and FIDELITYBK. The Consumer Goods Index followed, appreciating 6.65%, driven by sustained buying interest in MCNICHOLS and VITAFOAM.
Similarly, the Insurance Index gained 0.25%, supported by price appreciation in WAPIC, VERITASKAP, and CUSTODIAN. Conversely, the Industrial Goods Index led the laggards, declining 6.26% following significant profit-taking in BUACEMENT and CAP.
The Oil & Gas Index also retreated by 0.79%, pressured by sell-offs in JAPAULGOLD and OANDO. Meanwhile, the Commodity Index closed the week unchanged.
On the gainers’ chart, FIRSTHOLDCO led the market with a 38.7% weekly appreciation, followed by TIP (+27.2%), FIDELITYBK (+15.0%), LEGENDINT (+14.4%), and UCAP (+11.0%). These gains were supported by renewed buying interest across selected large-, mid-, and small-cap stocks.
Conversely, BUACEMENT topped the losers’ chart after shedding 19.0%, followed by REDSTAREX (-18.5%), JAIZBANK (-15.3%), CILEASING (- 13.3%), and PZ (-10.1%).
The declines were largely driven by profit-taking activities and sustained selling pressure in these counters. In its market update, Cowry Asset Limited said it expects the market to trade with a mixed but cautiously optimistic bias, as investors position ahead of corporate earnings releases.
“While profit-taking may persist following the market’s strong year-to-date performance, selective buying in fundamentally sound stocks, particularly within the banking sector, is expected to support market sentiment”, the firm said. Money Market Rates Mixed as Banks Put Excess Cash with CBN
