Nigerian Exchange Grows by N1.06trn as FCMB, LASACO List Offers
Nigerian Exchange, NGX, grew by N1.06 trillion as FCMB Group, LASACO Plc listed supplementary offers in the local bourse. The local bourse closed January with a modest gain of 1.53%, the All-Share Index (ASI) climbed further by 0.87% week on week, settling at 104,496.12 points.
According to Cowry Asset Limited, the bargain hunting was boosted by the influx of corporate earnings reports that showcased impressive numbers and raised expectations for attractive dividend payouts.
This positive momentum underscored the resilience of the local bourse, stockbrokers said. Hence, stock market capitalisation inched higher by 1.67% to close the week at N64.71 trillion. The supplementary listings of ordinary shares by LASACO Assurance Plc and FCMB Group Plc provided additional support, driving a notable increase of N1.06 trillion in investor wealth.
As of Friday, the market’s year-to-date return settled at 1.53%, reflecting sustained confidence in Nigerian stocks. According to Cowry Asset Limited, several stocks emerged as standout performers, recording remarkable price gains.
CHELLERAMS led the charge with an astonishing 60.4% surge, followed by VITAFOAM, which climbed 31.5% amid strong investor accumulation. BETAGLASS and NNFM each advanced by 21%, while SKYAVN soared by 20.7%, as market participants took strategic positions in anticipation of continued earnings growth.
Conversely, some stocks faced significant sell-offs. VERITASKAP plunged by 29.7%, making it the worst-performing stock of the week, while MRS suffered a 19% decline.
NEIMETH shed 14.5%, LINKASSURE lost 13.8%, and NSLTECH dropped by 13.6%, as profit-taking and weakened investor confidence weighed on these tickers. Trading activity during the week presented a mixed picture.
While the total volume of shares traded advanced by 3.60% to 3.24 billion units, spread across 77,269 deals, the total transaction value dipped by 9.61% to N69.19 billion.
However, overall market breadth remained robust, with 52 stocks recording gains against 44 decliners, driven by earnings reports and positive sentiment. Sectoral performance reflected the prevailing optimism, as four out of six tracked indices closed in positive territory.
The consumer goods Index, which surged by 4.01% week-on-week, was bolstered by renewed buying interest in key stocks such as VITAFOAM, NNFM, Nigerian Breweries, and NESTLE.
The banking Index climbed by 2.54%, while the commodity index posted a 1.78% gain. The Oil and Gas Index inched up by 0.97%, with OKOMUOIL, PRESCO, JAIZBANK, WEMABANK, ARADEL, and ETERNA attracting buy-side interest.
On the flip side, two sectors lagged behind as negative price movement dampened performance. The Insurance Index retreated due to declines in VERITAS KAPITAL, LINKAGE ASSURANCE, and GUINEA INSURANCE.
Also, the Industrial Index was weighed down by losses in JOHNHOLT, CUTIX, and industry heavyweight DANGOTE CEMENT. Selling pressure in these stocks dragged the sectors into negative territory.
Cowry Asset Limited expects the bullish momentum in the market to persist as more companies release their corporate earnings, coupled with heightened investor anticipation for dividend announcements from early filers.
Stockbrokers said the NGX currently finds itself in a “wait-and-see” phase, with increasing traded volumes signalling cautious optimism. Technical indicators such as candlestick formations and momentum tools offer mixed signals, presenting opportunities for astute traders who understand the art of buying low and selling high amid ongoing market volatility.
For Cowry Research, as earnings season progresses, investors are encouraged to maintain a strategic approach by focusing on fundamentally strong stocks. With the right positioning, they stand to capitalise on the market’s upward trajectory while navigating intermittent bouts of profit-taking, stockbrokers stated. #Nigerian Exchange Grows by N1.06trn as FCMB, LASACO List Offers 2025 Budget: Osun Govt Targets N109bn IGR
