The Nigerian equity market experienced a bullish run during the reported week, culminating in a significant surge in market capitalization and the All-Share Index. The market capitalization grew by an impressive N884 billion (1.37%), reaching N65.592 trillion, while the All-Share Index climbed by 1.38% to settle at 105,933.03 points. This positive performance signifies increased investor confidence and renewed interest in the Nigerian stock market. Trading activity was robust, with a total turnover of 3.051 billion shares valued at N98.350 billion exchanged in 72,535 deals. This marks a slight decrease in volume compared to the previous week, but a substantial increase in value, suggesting investors were willing to pay higher prices for shares. The market’s upward trajectory is indicative of a potentially strengthening economy and positive investor sentiment towards listed companies.
The Financial Services Industry dominated trading activity, accounting for a lion’s share of both volume and value. This sector alone contributed 74.08% of the total equity turnover volume and 53.07% of the total value, with 2.260 billion shares worth N52.190 billion traded in 33,724 deals. The dominance of the Financial Services Industry reflects the sector’s significant weight in the Nigerian economy and its attractiveness to investors. Trailing behind were the Consumer Goods and Industrial Goods Industries, reinforcing the breadth of investor interest across multiple sectors. This diverse participation suggests a healthy market environment and reduced reliance on a single sector for growth.
Access Holdings Plc, FBN Holdings Plc, and Zenith Bank Plc emerged as the most actively traded equities. These three companies alone accounted for a significant portion of the week’s trading, with 1.176 billion shares worth N38.469 billion exchanged in 9,506 deals. This represents 38.56% of the total equity turnover volume and 39.11% of the total value, highlighting the concentrated interest in these financial institutions. Their prominence in trading activity likely stems from their size, market share, and perceived stability, making them attractive to both institutional and individual investors. This concentration, however, also underscores the need for diversification and the potential impact these companies’ performance can have on the overall market.
Market breadth, a key indicator of overall market sentiment, was positive, with more gainers than losers. A total of 58 equities appreciated in value, exceeding the 52 recorded the previous week, while 34 equities declined, fewer than the 44 from the prior week. This suggests a broadening positive sentiment across the market, with more companies experiencing price increases. UPDC Plc led the gainers with a remarkable 38.50% surge, followed by Eterna Plc (32.79%) and International Energy Insurance Plc (29.53%). On the other hand, Sunu Assurances Nigeria Plc experienced the largest decline, dropping 12.87%, followed by University Press Plc (-10%) and Multiverse Mining and Exploration Plc (-9.95%). This varied performance across individual stocks highlights the importance of careful stock selection and the potential for both significant gains and losses in the equity market.
Sectoral performance was largely positive, echoing the overall bullish trend in the market. The Banking Index spearheaded the gains with a 4.66% week-on-week increase, followed by the Agriculture Index at 4.92%. The Oil and Gas, Insurance, and Industrial Goods Indices also posted gains, further demonstrating the broad-based positive momentum. Conversely, the Consumer Goods Index was the sole sector to register a decline, albeit a marginal one at 0.60%. This sectoral analysis provides a deeper understanding of the market’s dynamics and the relative performance of different industries. The robust performance of the banking sector, in particular, likely reflects optimism about the financial health of the Nigerian economy and the potential for increased lending and investment activities.
The positive market performance is further corroborated by a separate report from The PUNCH, which highlighted a N1.1 trillion gain in market capitalization in a single week, pushing the All-Share Index to 104,496.12 and the market capitalization to N64.709 trillion. This significant increase reinforces the narrative of a resurgent Nigerian equity market, attracting both domestic and potentially foreign investors. The listing of the Federal Government of Nigeria’s January 2025 issue of Savings Bonds on the NGX further adds to the positive sentiment and provides investors with additional investment options. This development underscores the government’s efforts to deepen the capital market and offer a wider range of investment instruments to the public. The overall optimistic market outlook suggests a potential for continued growth in the coming weeks, though market volatility and external factors can always influence future performance. Investors are advised to exercise caution and conduct thorough research before making investment decisions.
