NGX closes higher, gains N4.570trn on strong investor demand

The Nigerian equities market last week closed on strong note, gaining N4.570 trillion as investors renewed demand across selected stocks.

The market capitalisation of listed equities increased by 2.90 per cent to N162.157 trillion from N157.587 trillion reported the previous week.

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 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.

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 244177 deals.

An analysis of the transaction 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. Third place went to the ICT Industry, with a turnover of 114.622 million shares worth N21.541 billion in 29,152 deals.

Trading in 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.

Sectoral performance remained firmly positive during the week and reflected broad-based market participation, with gains across all tracked sectors.

The stronger performance of Banking and Insurance stocks suggests continued rotation into financial stocks, while the relatively modest gain in Consumer Goods points to more selective buying within the sector. The Banking sector rose by 4.43 per cent supported by renewed buying interest in FirstHoldco, Wema Bank and Zenith Bank.

The sector’s strong performance highlights continued investor appetite for banking stocks amid sustained interest in major financial institutions.

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 increase in buying

across insurance stocks provided further support to the sector following recent volatility. The Oil & Gas sector advanced 3.71 per cent, buoyed by gains in Aradel and Eterna.

Positive sentiment towards selected energy stocks continued to support the sector, despite fluctuations in global crude prices.

Similarly, the Industrial Goods sector gained 3.12 per cent, supported by renewed buying interest in Betaglass, BuaCement and AustinLaz. The sector’s performance suggests improving investor positioning across selected industrial counters.

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 and the Commodity index gained 1.24 per cent respectively.