Nigerian Exchange Enlarges as Investors Gain N295bn
The Nigerian Exchange (NGX) market capitalisation expanded as investors that traded highs and the lows gained N295 billion on the local bourse. The equities market rebounded from the previous week’s decline, as the All-Share Index (ASI) rose by 0.50% to close at 97,722.28 points point.
Stockbrokers at Cowry Asset Limited said the positive performance was driven by sector rotation and portfolio rebalancing activities. This reflects optimism from third quarter of 2024 earnings releases and the undervalued nature of many stocks with strong upside potential, stockbrokers said.
NGX year-to-date return increased to 30.69%, though stock market analysts said the broader market saw more decliners than gainers. Data from the Nigerian bourse showed 45 stocks lost value compared to 39 gains, reflecting a cautious trading approach.
Market activities this week were lacklustre in the face of low traded volumes and value, revealing the absence of smart money in the market, according to Cowry Asset Limited.
Total traded volume and value for the week decreased by 77.1% week on week and 48.7% week on week respectively, to 1.48 billion units valued at N38.88 billion.
These deals were executed in 44,795 trades, down by 8.2% versus previous week results. Across the sectoral front, performance was largely positive as three out of the five sectors moved in the northward direction. The insurance, banking, and consumer goods indices were the toast of investors.
Stock analysts said in their notes that the insurance index gained 2.84%, the banking index was up by 2.32%, and the consumer goods sector rose by 0.60% due to buying interest in stocks such as FLOURMILLS, UBA, MANSARD, GTCO, CORNERSTONE, and CHAMPION, respectively.
On the contrary, the Oil & Gas and Industrial sectors recorded marginal losses of 0.29% and 0.20% on the back of adverse price movements seen in tickers like OANDO, BUACEMENT, and BERGER.
At the close of the week, stocks such as JOHNHOLT (61%), EUNISELL (46%), TANTALIZER (34%), SUNUASSUR (32%), and FLOURMILL (23%) were the best performing securities in the week.
However, DAARCOMM (12%), OANDO (10%), VFDGROUP (10%), ABBEYBDS (10%), and ELLAHLAKES (7%) emerged as the worst performing stocks this week due to adverse price movement.
Overall, the equities market capitalisation of the Nigerian Exchange increased by N295 billion week on week to settle at N59.22 trillion on Friday. #Nigerian Exchange Enlarges as Investors Gain N295bn Equities Investors Wealth Rises as Nigerian Exchange Rally
