NGX Rises to N39.17T as Equities Investors See N65bn Gain
The Nigerian Exchange (NGX) market capitalisation rose to N39.17 trillion after sustained bullish momentum added about a N65 billion gain to investors’ wealth. On weekly comparison, the local exchange ascended by 0.17%, driving a year-to-date return far ahead of an annual inflation rate of 27.33%.t
According to stockbrokers, the prevailing bullish momentum is seen as indicative of broader market confidence in the economic outlook, accentuated by the traditional optimism associated with the holiday season. Last week, the Nigerian Exchange All-Share Index reached 71,230.48 points as market players digested the recently released Nigeria’s third-quarter economic performance.
“We observed strategic moves by investors engaging in portfolio reshuffling and rebalancing activities, anticipating the year-end, dividend season, and the potential impact of the forthcoming Santa-Claus rally”, Cowry Asset Limited said in its market update.
Stockbrokers explained that bargain hunting activities by equity investors contributed to a notable total profit of N64.61 billion, further boosting the year-to-date return of the index to an impressive 38.98%. Activity level varied as average volume traded rose 19.7% week on week to ₦4.2 billion while value traded declined by 18.2% to 562.7 million units, Afrinvest said in its market report.
The top traded stocks by volume were UNIVINSURE (258.2 million units), VERITASKAP (188.1 million units), and UNITYBNK (141.9 million units), while MTNN (₦3.2 billion), ZENITH (₦1.9 billion), and GTCO (₦1.8 billion) led in terms of value.
While the overall market performance was positive, the investment firm noted a minor setback in the Consumer Goods index, declining by 0.53% due to specific adverse price movements.
Conversely, the Insurance index emerged as the week’s leading gainer, experiencing a 4.07% week-on-week increase, primarily driven by gains in SOVRENINS, ROYALEX, and SUNUASSUR.
The Banking and Industrial Goods indexes recorded gains of 1.94% and 0.04%, respectively, propelled by notable price increases in UNITYBNK, DEAPCAP, GTCO, MULTIVERSE, and BETAGLASS.
Elsewhere, the level of trading activity witnessed a 19.77% increase in total traded volume, reaching 2.4 billion units in weekly deals, with the number of trades advancing by 1.43% to 33,230. However, the weekly traded value experienced a decrease of 18.16%, totalling N22.67 billion.
Top performers for the week, included MECURE, MULTIVERSE, and UNITYBNK, with each securing an impressive gain of 61%, 60%, and 57%, respectively. Conversely, stocks like THOMASWY, ELLAHLAKES, and STANBIC faced declines in their share prices, experiencing price decreases of -42%, -10%, and -7%, respectively, on a week-on-week basis.
Looking ahead, Cowry Research sees a sustained bullish trend in the Nigerian stock market with continued buying interest on blue-chip stocks amid ongoing asset and sector rotations. Naira Devaluation Deepens Economic Crisis in Nigeria
Cowry Asset Limited said the anticipation is set against the backdrop of the upcoming Santa Claus rally and year-end window-dressing activities orchestrated by fund managers. Overall, the equities market capitalisation inched higher by N64.61 billion to N39.17 trillion.
