Nigerian Exchange Rises by N423bn on Strong Bargain Hunting
The equities market capitalisation of the Nigerian Exchange (NGX) rose by about N427 billion in the just concluded week due to bargain hunting in lightweight and few bellwethers.
Top gainers in the stock market week companies with low market capitalisation: Gold Guinea Brew, Sunu Assurance Nigeria, Lafarge Africa WAPCO and others. The market ended the week on a bullish trajectory, with the All-Share Index (ASI) advancing by 0.72% week on week to close at 98,210.75 points.
This performance underscores renewed investor confidence, driven by strategic positioning in high-performing stocks amid an evolving macroeconomic environment, stockbrokers said in a note to investors.
Due to a strong rally, the year-to-date return on the index now stands at an impressive 31.3%, training an annual inflation rate of 33.88%.
Reflecting the temperature, the market breadth was positive at 1.70x, with 51 gainers outperforming 30 losers, reflecting robust market sentiment, according to data from the Nigerian Exchange cited by stockbrokers.
Trading activity inched higher significantly during the sessions. The volume of transactions surged by 21.9% to 3.89 billion units, while the value traded rose sharply by 59.9% to N87.75 billion compared to the preceding week.
However, the total number of deals executed during the week experienced a marginal decline of 2.8%, closing at 43,867 trades. This heightened activity reflects increased investor participation, particularly as market players position themselves ahead of expected fiscal policy updates, Cowry Asset said.
Sectoral performance was broadly positive, with all five major sectors posting gains. The insurance index led the charge, appreciating by 8.45%, followed by the Oil & Gas index, which gained 4.84%.
These advances were primarily driven by notable performances from stocks such as SUNU Assurance, Cornerstone, LASACO, Eterna, SEPLAT, and Conoil, stock traders at Cowry Asset Limited said.
Other sectors also contributed to the bullish momentum, with the industrial goods, banking, and the consumer goods indices rising by 2.52%, 1.30%, and 0.13%, respectively. These indices uptick were buoyed by gains in stocks like Lafarge Africa, Golden Guinea Breweries, Beta Glass, Access Corporation, Fidelity Bank, May & Baker, and UBA.
Top gainers during the week included Golden Guinea Breweries, which soared by 46%, and SUNU Assurance, which climbed 30%. Lafarge Africa advanced by 28%, while NSL Technology and Consolidated Hallmark Insurance each gained 27% and 25%, respectively.
Conversely, the top laggard was Learn Africa, which declined by 12%, followed by Aradel Holdings, Red Star Express, E-Tranzact, and John Holt, all of which shed 10% apiece.
Analysts expect the bullish momentum to persist in the coming week, driven by continued investor interest in fundamentally sound stocks. Cowry Asset Limited said from a technical perspective, the exchange appears to be in a markup phase amidst ongoing recovery and market volatility. The candlestick patterns and momentum indicators suggest a balanced interplay of market strength and weakness.
Overall, the equities market capitalisation of the Nigerian Exchange rose by N426.69 billion to close at N59.53 trillion. #Nigerian Exchange Rises by N423bn on Strong Bargain Hunting Lagos Boosts CNG Initiative for Sustainable Energy
