NGX climbs to N126.43trn as equity investors gain N2.67trn

Nigerian Exchange (NGX) market capitalisation climbed to N126.43 trillion as equity investors gained N2.67 trillion week-on-week, supported by buying interest in stocks with upside potential.

The All-Share Index (ASI) advanced by 2.15% week-on-week to settle at 196,968.15 points as investors repositioned across sectoral indices.

The Nigerian equity market capitalisation increased by 2.15% or N2.67 trillion over 5 trading sessions, settling at ₦126.43 trillion from ₦123.76 trillion in the preceding week. 

At the close of the trading session on Friday, the year-to-date return improved to 26.58%, reflecting the sustained positive momentum in the domestic equities market.

Stockbrokers reported that market breadth remained negative at 0.76x, with 44 gainers compared to 58 decliners, indicating that losses across a larger number of stocks moderated the broader market’s gains.

Trading activity softened, as volume and turnover declined by 32.52% and 9.51% week-on-week, respectively, based on the NGX record. 

However, the number of deals edged higher by 0.35% over the same period. In the market, investors traded 3.70 billion shares valued at ₦177.76 billion across 371,317 deals, suggesting relatively weak overall participation, according to Cowry Asset Management Limited.

Stockbrokers reported that sectoral performance closed the week on a broadly bullish note, with gains recorded across all major sectors under coverage except the Insurance sector.

The Oil & Gas sector led the pack, advancing by 9.43% week-on-week, supported by strong buying interest in Aradel Holdings Plc and Oando Plc.

Closely following was the Industrial Goods sector, which appreciated by 3.89% week-on-week, driven by improved investor confidence in Premier Paints Plc, Lafarge Africa Plc, and Dangote Cement Plc.

The Consumer Goods sector also rose by 1.12%, underpinned by buying activities in PZ Cussons Nigeria Plc and Cadbury Nigeria Plc, while the Banking sector edged up by 0.24% on the back of renewed interest in Stanbic IBTC Holdings Plc, Zenith Bank Plc, and Guaranty Trust Holding Company Plc.

Meanwhile, the Insurance sector declined by 1.88%, reflecting sustained selling pressure in AXA Mansard Insurance Plc, Universal Insurance Plc, and Cornerstone Insurance Plc.

At the stock level, FTGINSURE led the gainers’ chart with a 58.5% surge, followed by PREMPAINTS (+32.7%), ETERNA (+28.7%), NGX(+21.7%),and UACN (+20.6%), supported by strong buying interest.

On the flip side, MCNICHOLS (-24.4%), MECURE (-18.9%), MULTIVERSE (-18.7%), JAIZBANK (-18.4%), and OMATEK (-15.4%) topped the losers’ chart, reflecting profit-taking and sustained selling pressure in those counters.

“In the near term, we expect the domestic equities market to maintain a cautiously positive tone as investors continue to position in fundamentally sound and undervalued stocks following the recent rebound.

“Bargain hunting and selective accumulation, particularly in large-capitalisation and fundamentally strong counters, could provide support to the benchmark NGX All-Share Index.

“However, intermittent profit-taking and relatively subdued trading activity may limit the pace of gains.

Consequently, market performance in the coming week is expected to be driven largely by stock-specific developments and investor sentiment across key sectors”, Cowry Asset told clients in a note.