Investors Gain N455bn as Bullish Sentiment Drives Equities Market Higher

Samuel Mobolaji

In a holiday-shortened week, investors enjoyed a bullish rally on the Nigerian Exchange (NGX), securing a significant N455 billion increases in market capitalization, which closed at N56.457 trillion.

The All-Share Index (ASI) also advanced by 0.81 per cent week-on-week (W-o-W), finishing at 98,247.99 points as three out of four trading sessions recorded gains, reflecting growing investor confidence in the market’s upward trajectory.

Sectoral performance highlighted resilience, particularly in the Banking, Insurance, and Oil & Gas sectors. The NGX Banking index led the charge with a 1.26 per cent increase W-o-W, driven by strong performances in key financial stocks.

The NGX Insurance index followed with a 0.86 per cent gain, while the NGX Oil & Gas index posted a marginal 0.02 per cent increase. However, not all sectors thrived; the NGX Consumer Goods and NGX Industrial Goods indices fell by 0.77 per cent and 0.13 per cent, respectively.

Market breadth for the week was positive, as 41 equities appreciated, 40 depreciated, and 70 remained unchanged. Caverton Offshore Support Group led the gainers with a remarkable 45.28 per cent increase to close at N3.69 per share, while Fidelity Bank followed closely with a 24.20 per cent rise, closing at N13.60 per share. Fidson Healthcare also saw strong growth, climbing 21.76 per cent to close at N15.95 per share.

On the flip side, Northern Nigeria Flour Mills (NNFM) topped the losers’ chart, falling by 18.97 per cent to N35.25 per share. MeCure Industries shed 18.18 per cent, closing at N7.65 per share, while Tantalizer dropped 14.08 per cent, ending the week at 61 kobo per share.

Despite the overall bullish sentiment, the total trading activity witnessed a decline. Investors traded 1.860 billion shares worth N38.445 billion in 40,228 deals, compared to the previous week’s higher volume of 2.584 billion shares valued at N51.205 billion, exchanged in 50,615 deals. The reduced activity did not dampen market gains, as key sectors remained buoyant.

The Financial Services industry, by volume, led the activity chart with 820.815 million shares worth N16.149 billion traded in 16,627 deals, accounting for 44.13 per cent of total equity turnover volume and 42.01 per cent of value. Following closely was the Oil and Gas industry, which saw 443.711 million shares worth N5.055 billion traded in 5,319 deals. The Conglomerates industry rounded out the top three, with 183.729 million shares worth N2.971 billion traded in 2,510 deals.

Among individual equities, Japaul Gold & Ventures, FBN Holdings (FBNH), and UACNwere the top three most traded by volume, collectively accounting for 728.034 million shares worth N10.029 billion in 4,374 deals. Together, these stocks contributed 39.14 per cent to the total equity turnover volume and 26.09 per cent to the value.

As investors continue to navigate the market, this bullish trend presents promising opportunities, especially in sectors such as Financial Services and Oil & Gas. With key stocks performing well, market participants may look forward to sustained growth in the coming weeks.

To this end, analysts have anticipated continued bullish sentiment on the Nigerian equities market this week, driven by portfolio rebalancing and strategic positioning in value-driven stocks.

Analysts at Cowry Assets Management Limited said, “With the market displaying resilience amid positive macro signals, we anticipate continued bullish sentiment in the coming week, driven by portfolio rebalancing and strategic positioning in value-driven stocks.

“The recent dip in inflation and favourable quarter-end activities suggest that investors’ optimism may persist, creating entry opportunities for those seeking fundamentally sound investments.

“However, we advise caution as market volatility remains a key factor. Investors should maintain a focus on quality stocks with strong growth prospects to navigate potential swings effectively.”