The Nigerian Exchange (NGX) saw significant activity last week, with investors trading 3.249 billion shares valued at N237.986 billion in 287,919 deals. This performance marked a sharp increase in transaction value despite a decline in trading volume. The market capitalization rose to N162.157 trillion, reflecting a 2.90% gain. The NGX All-Share Index (ASI) also appreciated by 2.78% to close at 249,804.56 points.
In comparison to the previous week, the weekly turnover value jumped by about 82.8%, while the number of deals increased by 17.6%. However, trading volume declined by about 10.9%. The Financial Services Industry dominated activity on the Exchange, accounting for 79.43% of total equity turnover volume. This sector recorded transactions in 2.581 billion shares valued at N97.212 billion across 138,900 deals.
The Services Industry ranked second, with 131.102 million shares worth N2.731 billion traded in 15,084 deals. The ICT Industry occupied the third position, recording turnover of 114.622 million shares valued at N21.541 billion in 29,152 deals. The concentration of trading in financial stocks reflects continued investor interest in the sector, with banking and financial services equities accounting for a substantial portion of market liquidity.
Fidelity Bank Plc, Sterling Financial Holdings Company Plc, and Mutual Benefits Assurance Plc were among the most actively traded stocks, collectively recording transactions involving 1.229 billion shares worth N15.942 billion in 7,796 deals. Their combined volume represented 37.83% of total equity turnover, while their value accounted for 6.70% of the market's total value traded during the week.
Beyond the increase in turnover, the broader market witnessed a substantial improvement in price performance. A total of 52 equities appreciated in price during the week, compared with only nine equities that recorded gains in the previous week. At the same time, 32 equities declined, significantly lower than the 80 equities that lost value in the preceding week.
The sharp improvement in market breadth suggests a broader distribution of buying interest across listed equities rather than gains being concentrated in only a handful of stocks. Another 63 equities remained unchanged, compared with 58 recorded in the previous week. This improvement indicates a positive trend in the market, with investors showing increased confidence in various sectors.
The NGX's performance reflects a strong and growing interest in Nigerian equities, with the market capitalization and turnover value indicating a bullish trend. The dominance of financial stocks and the improvement in market breadth are key indicators of the market's health. As investor activity continues to intensify, the market is likely to see further growth and increased liquidity.
Key points
- The Nigerian Exchange's market capitalization reached N162.157 trillion, with a turnover of N237.986 billion.
- The Financial Services Industry dominated activity on the Exchange, accounting for 79.43% of total equity turnover volume.
- A total of 52 equities appreciated in price during the week, indicating a broader distribution of buying interest across listed equities.
