The Nigerian equities market closed on a strong note last week, with the market capitalisation of listed equities increasing by 2.90 per cent to N162.157 trillion from N157.587 trillion reported the previous week. This growth was driven by renewed investor demand across selected stocks. The benchmark NGX All-Share Index (ASI) also rose by 2.78 per cent week-on-week (WoW) to close at 249,804.56 points.
The market breadth was positive, with 52 gainers against 32 losers, bringing the year-to-date return to 60.63 per cent. The increase in market participants reflected improved investor sentiment, as advancing stocks significantly outnumbered declining counters. This indicates a positive outlook for the market, with investors showing confidence in the Nigerian equities market.
Trading activity was mixed across the major market indicators. While trading volume declined by 10.91 WoW, both the number of deals and transaction value increased by 17.63 per cent and 82.85 per cent WoW, respectively. In total, investors exchanged 3.249 billion shares valued at N237.986 billion, across 287,919 deals against 3.647 billion worth N130.151 billion in 244,177 deals.
An analysis of the transactions showed that the financial services Industry led the activity chart with 2.581 billion shares valued at N97.212 billion traded in 138,900 deals, contributing 79.43 per cent and 40.85 per cent to the total equity turnover volume and value, respectively. The Services Industry followed with 131.102 million shares worth N2.731 billion in 15,084 deals.
The top three equities, namely Fidelity Bank Plc, Sterling Financial Holdings Company Plc, and Mutual Benefits Assurance Plc, accounted for 1.229 billion shares worth N15.942 billion in 7,796 deals, contributing 37.83 per cent and 6.70 per cent to the total equity turnover volume and value, respectively. This indicates significant investor interest in these stocks.
Sectoral performance remained firmly positive during the week, with gains across all tracked sectors. The Banking sector rose by 4.43 per cent, supported by renewed buying interest in FirstHoldco, Wema Bank, and Zenith Bank. The Insurance sector followed with a 4.79 per cent gain, driven by significant advances in Sovereign Trust Insurance, Mutual Benefits, and FTG Insurance.
The positive performance of the market was driven by strong investor demand, with the market gaining N4.570 trillion. The Industrial Goods sector gained 3.12 per cent, supported by renewed buying interest in Betaglass, BuaCement, and AustinLaz. The Consumer Goods sector recorded the smallest gain, rising 0.52 per cent, as gains in Mcnichols, Champion Breweries, and Dangote Sugar were partly offset by declines in Cadbury, Honeyflour, and Unilever.
Key points
- The Nigerian equities market gained N4.570 trillion last week.
- The market capitalisation of listed equities increased by 2.90 per cent to N162.157 trillion.
- The benchmark NGX All-Share Index (ASI) rose by 2.78 per cent week-on-week (WoW) to close at 249,804.56 points.
