The Nigerian equities market saw a reversal in its performance, recording a 0.87% increase week-on-week (WoW) as investors gained approximately N481 billion. The All-Share Index (ASI) closed the week at 98,592.12 points, up from 97,745.73 points the previous week, while the market capitalization rose to N55.978 trillion, reflecting an increase in investor sentiment.
Trading activity, however, saw mixed results. A total turnover of 2.679 billion shares valued at N49.017 billion was recorded in 47,451 deals, a slight decrease in both volume and value from the previous week’s 3.393 billion shares worth N52.304 billion across 44,814 deals. Despite the overall market growth, the financial services industry remained the most active, accounting for 74.00 per cent of the total equity turnover volume and 65.25 per cent of the total value, with 1.982 billion shares worth N31.985 billion traded in 23,467 deals.
During the week under review, the NGX Banking Index grew by 5.14 per cent owing to increased activity and investor interests particularly as the banks continue with their recapitalisation efforts wooing investors with appealing offers. Already, GTCO, Fidelity, Access bank, FCMB and Zenith Bank have all started their quest on the Exchange for additional capital Rights issues and public offers.
The oil and gas industry followed with 229.680 million shares valued at N7.441 billion, while the ICT industry took the third spot with 113.887 million shares worth N3.059 billion. The top three equities by volume—Access Holdings Plc, Veritas Kapital Assurance Plc, and United Bank for Africa Plc—contributed 28.22 per cent and 21.88 per cent to the total equity turnover volume and value, respectively.
Sectoral performance was positive, with most indices finishing higher. The NGX Banking Index led the gainers with a 5.14 per cent increase, followed by the NGX Consumer Goods Index, which appreciated by 2.35 per cent. Conversely, the NGX Industrial Goods Index was the biggest loser, declining by 3.67 per cent.
The market’s breadth was also positive, with 46 equities appreciating in price, compared to 40 in the previous week. Notable gainers included Oando Plc, which surged by 60.47 per cent, and R.T. Briscoe Plc, which rose by 51.19 per cent. On the other hand, Champion Breweries Plc and BUA Cement Plc led the decliners, falling by 15.03 per cent and 9.99 per cent respectively.
In the exchange-traded products (ETP) market, a total of 20,375 units valued at N5.912 million were traded in 148 deals, an increase in value from the previous week’s 21,051 units worth N2.202 million. Meanwhile, the bond market also saw a significant rise in activity, with 184,955 units valued at N187.759 million traded in 40 deals, compared to 63,807 units worth N61.528 million in 37 deals the previous week.
Looking ahead, analysts at Cowry Research predict that the market will continue the current upward trend in the bourse to persist “supported by improving Market fundamentals and continued buying sentiment.
The ongoing dividend earning season is likely to sustain positive sentiment among market players. As we await the half-year earnings reports from major banks in the coming weeks, investors are expected to continue repositioning for value, taking advantage of any market pullbacks.”