NGX Index up 1.41% as Investors Gain N835bn in Robust Week

Samuel Mobolaji

Equities investors on the Nigerian Exchange (NGX) saw significant gains over the past trading week, as strategic investments drove the NGX All-Share Index up by 1.41 per cent to close at 99,448.91 points. This momentum translated to a notable N835 billion increase in market capitalisation, which ended the week at N60.261 trillion.

Sectoral performances showcased strength across most indices. The NGX Banking Index led the charge, climbing 7.86 per cent week-on-week. The NGX Insurance Index followed with a 4.04 per cent rise, and the NGX Oil & Gas Index added 3.95 per cent.

However, the NGX Consumer Goods Index declined by 0.84 per cent, marking the only sector in the red for the week. The NGX Industrial Index held a modest gain of 0.1 per cent.

Market breadth was overwhelmingly positive, with 58 stocks appreciating, while 18 declined and 76 remained unchanged. Eunisell Interlinked led the week’s gainers, surging 20.69 per cent to close at N3.50 per share. United Bank for Africa (UBA) followed with an 18.50 per cent rise to N30.10, and Unilever Nigeria increased by 18.42 per cent to N22.50.

On the losing end, Dangote Sugar Refinery saw the steepest drop, falling 10.13 per cent to N31.50. John Holt lost 9.84 per cent to close at N2.75, while Secure Electronic Technology declined by 9.68 per cent to 56 kobo.

Trading activity remained robust, with a total turnover of 2.142 billion shares valued at N85.946 billion in 41,217 deals. This was a notable increase from the prior week’s 1.447 billion shares worth N73.889 billion across 39,546 deals.

The Financial Services Industry dominated the volume chart, with 1.176 billion shares worth N23.739 billion exchanged in 19,570 deals, representing 54.91 per cent of the week’s total equity turnover volume.

Following was the Consumer Goods Industry with 366.923 million shares valued at N4.672 billion across 4,004 deals, while the Oil and Gas Industry accounted for 228.439 million shares worth N52.635 billion in 7,547 deals.

UBA, Champion Breweries, and Japaul Gold and Ventures topped the volume chart, with 828.822 million shares worth N12.319 billion in 5,080 deals, contributing 38.70 per cent and 14.33 per cent of total turnover volume and value, respectively

Meanwhile, analysts on the NGX expected the market to continue on similar previous week dynamics as investors’ investment will be shaped by the ongoing third quarter (Q3) results.

For instance, analysts at Cowry Assets Management Limited pointed that the recent positive quarterly corporate earnings reports have further buoyed market sentiment, particularly in the banking, industrial goods, and consumer goods sectors, delivering strong performances from key players and driving the benchmark index closer to the 100,000-points psychological threshold.

“Notably, we think the current rally is likely to persist, though cautious profit-taking activities may create intermittent dips. Looking ahead, we see the local bourse poised for further gains as investors look forward to the upcoming macroeconomic data releases and corporate earnings reports, which are anticipated to influence short-term trading dynamics,” Cowry stated.

The chief operating officer of InvestData Consulting Limited, Mr. Ambrose Omordion said that “we expect positive sentiment and mixed trend to continue on profit taking and positioning, ahead of more Q3 earnings reports. Also, sector rotation and portfolio rebalancing continue in the market, with investors taking advantage of pullbacks to buy into value.”