The Nigerian Exchange Limited (NGX) experienced a buoyant trading week, culminating in a notable surge in market capitalization despite a shortened trading period due to a public holiday. The overall market capitalization appreciated by N182 billion, reaching N56.473 trillion, a 0.32% week-on-week increase. This positive trajectory was mirrored by the All-Share Index, which climbed by 321.15 basis points to close at 99,587.25, reflecting a broad-based market upswing driven by strong performance across several sectors, most notably financial services. This positive close suggests renewed investor confidence and a potentially optimistic outlook for the Nigerian equity market.
The financial services sector emerged as the clear driver of this positive market performance, dominating trading activity in terms of both volume and value. This heightened activity underscores the increasing appeal of banking and insurance stocks to investors. A staggering 2.157 billion shares, representing a value of N75.407 billion, were traded within the financial services sector. This accounted for a significant 65.78% of the total equity turnover volume and 58.72% of the total value. This dominance clearly indicates a strong investor preference for financial stocks, potentially driven by expectations of improved financial performance within the sector and attractive dividend yields.
While the financial services sector led the charge, other sectors also contributed to the positive market momentum. The consumer goods industry witnessed substantial trading activity, with 193.816 million shares worth N5.405 billion exchanged. The conglomerates industry also recorded a healthy turnover of 168.221 million shares valued at N1.683 billion. This diversified activity across sectors suggests a broad-based market recovery and indicates that investor interest is not solely concentrated in a single sector, which is a healthy sign for overall market stability.
Within the financial services sector, Fidelity Bank Plc, Access Holdings Plc, and United Bank for Africa Plc emerged as the most actively traded equities. These three companies alone accounted for a significant chunk of the trading activity, with 763.092 million shares worth N17.503 billion changing hands. Their combined contribution represented 35.36% of the total equity turnover volume and 23.22% of the total value. This concentrated trading activity in these prominent financial institutions likely reflects their market leadership positions and potentially positive investor sentiment surrounding their future prospects.
The overall market breadth closed positive, further reinforcing the optimistic market sentiment. A total of 41 stocks recorded gains during the week, outnumbering the 45 losers, with 68 equities remaining unchanged. Among the top gainers, Abbey Mortgage Bank Plc led the pack with a remarkable 44.44% increase in its share price, followed by Daar Communications Plc and Secure Electronic Technology Plc. Conversely, Juli Plc experienced the steepest decline, with its share price plummeting by 30.63%, while Ellah Lakes Plc and The Initiates Plc also recorded substantial losses. This mixed performance, while highlighting inherent market volatility, underscores the opportunities for both gains and losses present in the Nigerian equity market.
Beyond the equities market, the Exchange Traded Products (ETPs) segment also experienced increased activity. A total of 1.039 million units valued at N43.613 million were traded, representing a significant improvement compared to the previous week’s figures. This increased activity in the ETP segment suggests growing investor interest in these diversified investment vehicles. Furthermore, the listing of additional shares of Multi-Trex Integrated Foods Plc through a private placement indicates ongoing capital market activity and provides further avenues for investment. Finally, the reported 58% rise in profit after tax for the Nigerian Exchange Group Plc further bolsters the positive narrative surrounding the Nigerian capital market, suggesting a healthy and growing exchange environment.
