Equities Investors Reap N121bn Gains Amid Strong Bullish Momentum w/w

Samuel Mobolaji

The Nigerian stock market experienced a robust week, with investors enjoying substantial gains as bulls took charge in three out of five trading sessions.

The All-Share Index (ASI) rose by 0.21 per cent week-on-week, closing at 98,458.68 points, which translated to a significant increase in market capitalisation of N121 billion, bringing it to N56.578 trillion.

Sector performance showcased a mixed bag, with the NGX Oil & Gas index leading the charge with a remarkable 3.3 per cent increase week-on-week. The Banking and Insurance indices also made impressive strides, posting gains of 2.5 per cent and 1.4 per cent, respectively.

However, the Consumer Goods index edged down slightly by 0.1 per cent, while the NGX Industrial Goods index experienced a marginal decline of 0.04 per cent.

Market breadth reflected a positive sentiment, with 45 equities appreciating in price, 33 depreciating, and 73 remaining unchanged. Ellah Lakes emerged as a standout performer, surging by 59.74 per cent to close at N4.92 per share. Regency Assurance followed closely, with a 53.33 per cent increase to finish at 69 kobo. Flour Mills Nigeria also enjoyed a notable rise of 22.89 per cent, closing at N62.00 per share.

On the flip side, Caverton Offshore Support Group led the decliners, dropping 27.37 per cent to close at N2.68 per share. Multiverse Mining and Exploration followed with a 19.64 per cent decline, ending at N9.00, while Okomu Oil fell by 13.10 per cent, closing at N363.00 per share.

Overall, trading activity surged, with a total turnover of 3.318 billion shares valued at N45.911 billion exchanged during the week, compared to 1.860 billion shares worth N38.445 billion in the previous week.

The Financial Services Industry was the frontrunner, trading 1.430 billion shares valued at N23.659 billion across 22,745 deals, contributing 43.09 per cent and 51.53 per cent to total equity turnover volume and value, respectively. The Oil and Gas Industry followed suit with 703.389 million shares worth N7.323 billion in 6,207 deals, while the Healthcare Industry recorded a turnover of 411.489 million shares valued at N2.896 billion across 827 deals.

Trading in the top three equities—Japaul Gold & Ventures, Mecure Industries, and Fidelity Bank—accounted for 1.363 billion shares valued at N9.472 billion in 4,050 deals, representing 41.06 per cent and 20.63 per cent of total equity turnover volume and value, respectively. As investors capitalise on this upward momentum, the outlook for the Nigerian stock market appears promising.

Meanwhile, analysts at Afrinvest Limited, predicted that, “this week, we anticipate a bearish performance on the local bourse as investors reassess their portfolio following the recent 50 basis points increase in MPR.”

On his part, the chief operating officer of InvestData Consulting Limited, Mr Ambrose Omordion, projected that a mixed sentiment to continue on profit taking and portfolio rebalancing ahead of quarter-end window dressing and Q3 earnings session.

He, also, projected that sector rotation will continues in the market this week, with investors taking advantage of pullbacks to buy into value.

“This is amid the volatility and pullbacks that add more strength to upside potential. Consequently, investors should take advantage of price correction. Also looking at the trends and events across the globe and domestically”, he said.