The Nigerian stock market experienced a significant surge in investors' returns, with a N4.6 trillion increase week-on-week. This growth was primarily driven by renewed demand across selected major indices. The benchmark indicator, Nigerian Exchange Limited All-Share Index (NGX ASI), gained 2.78 per cent or 6,751.82 basis points to close at 249,804.56 points.
The NGX ASI's Month-to-Date and Year-to-Date returns stood at +2.3 per cent and +60.5 per cent, respectively. This growth was largely driven by demand for stocks such as First Holdco Plc, Aradel Holdings Plc, BUA Cement Plc, MTN Nigerian Communications Plc, and Zenith Bank Plc. These stocks saw significant gains, with First Holdco Plc rising by 17.7 per cent, Aradel Holdings Plc by 9.6 per cent, BUA Cement Plc by 6.8 per cent, MTN Nigerian Communications Plc by 3.1 per cent, and Zenith Bank Plc by 2.4 per cent.
The market capitalisation also saw a significant increase, rising by N4.6 trillion to close the week at N162.157 trillion from N157.587 trillion. Sectoral performance was broadly positive, with the Banking, Insurance, Oil & Gas, Industrial Goods, and Consumer Goods indices all closing higher for the week. The Banking sector saw a 4.4 per cent increase, while the Insurance sector rose by 3.8 per cent.
Market breadth remained firmly positive during the week, with 61 gainers against 39 losers. This strong breadth reflected improved investor sentiment, as advancing stocks significantly outnumbered declining counters. Sovereign Trust Insurance led the gainers table with a 30.95 per cent increase to close at N2.20 per share.
On the other side, Transcorp Power led the decliners table with an 18.94 per cent decrease to close at N178.00 per share. Other stocks that declined significantly included John Holt, which lost 18.89 per cent to close at N7.30, and Ellah Lakes, which declined by 18.14 per cent to close at N8.35 per share.
A total turnover of 3.249 billion shares worth N237.986 billion in 287,919 deals was traded this week by investors on the floor of the Exchange. This represents a significant increase from the previous week, when a total of 3.647 billion shares valued at N130.151 billion exchanged hands in 244,777 deals.
Analysts at Cowry Assets Management Limited attributed the market's positive performance to strong investor sentiment, increased demand for selected stocks, and broad-based gains across all sectors. They noted that the Banking sector served as the primary catalyst for the week's advance. Meanwhile, Cordros Securities Limited noted that market direction in the coming week will likely be shaped by the outcome of the 307th MPC meeting and developments in the primary market auctions.
Key points
- The Nigerian stock market saw a N4.6 trillion increase in investors' returns week-on-week.
- The market capitalisation rose to N162.157 trillion from N157.587 trillion.
- The Banking sector saw a 4.4 per cent increase, leading the sectoral performance.
