Equities Investors Gain N481bn as Market Surges 0.87% w/w

Samuel Mobolaji

Investors reaped substantial rewards last week as the Nigerian equities market surged 0.87 per cent, with the All-Share Index closing at 98,592.12 points, as the market capitalisation saw a significant boost of N481 billion, reaching a total of N55.978 trillion.

This uptick, driven by renewed interest in financial and consumer goods stocks, elevated the year-to-date return to an impressive 31.9 per cent as of August 9, 2024, underscoring a period of substantial investor gains.

Analysis of last week’s trading activities showed that gains were led by the NGX Banking Index, which soared 5.14 per cent on the back of favorable developments including the Central Bank of Nigeria’s approval for Unity Bank and Providus Bank’s merger, as well as the reintroduction of the retail Dutch auction system (rDAS) in the foreign exchange market.

This positive momentum extended across other indices, with the NGX Consumer Goods, NGX Insurance, and NGX Oil & Gas indices rising by 2.35 per cent, 1.79 per cent, and 0.97 per cent, respectively.

Conversely, the NGX Industrial Index was the exception, retreating by 3.67 per cent. Despite this, the overall market breadth remained positive, with 46 equities appreciating in value and notable gains in individual stocks such as Oando, which surged by 60.47 per cent, and R T Briscoe, which increased by 51.19 per cent.

However, some stocks like Champion Breweries and BUA Cement experienced declines, highlighting the mixed performance within the market.

Although, trading activity saw a reduction compared to the previous week, with a total of 2.679 billion shares worth N49.017 billion traded in 47,451 deals. The Financial Services Industry dominated the volume and value of trades, reflecting its significant influence on the market’s performance.

The market’s strong performance last week underscores a positive investor outlook, driven by key financial sector developments and favorable market internals.