The Nigerian Exchange Limited (NGX) experienced a significant surge in market capitalization, adding N966 billion during a four-day trading week following the Easter holidays. This robust growth was fueled by optimistic investor sentiment and strong performance in key sectors, particularly banking and consumer goods. The All-Share Index (ASI) climbed by 1.46%, closing at 105,752.61 points, while the market capitalization reached N66.465 trillion, a substantial increase from the N65.499 trillion recorded the previous week. This positive trajectory signaled a renewed confidence in the Nigerian market after the holiday period.
Trading activity also intensified during the week, with a notable increase in both volume and value. Investors traded 1.854 billion shares worth N56.025 billion across 51,386 deals. This marked a significant uptick compared to the previous week’s 1.525 billion shares valued at N43.006 billion in 51,156 deals. The increased market turnover underscored the heightened investor participation and their willingness to engage in trading activities.
The financial services sector continued to dominate the market, accounting for a substantial portion of the total equity turnover. This sector alone contributed 68.28% of the volume and 52.48% of the value, reflecting the continued interest in banking stocks. A staggering 1.266 billion shares valued at N29.4 billion were traded in 24,351 deals within the financial services sector. Following closely were the information and communication technology (ICT) and consumer goods sectors, further contributing to the overall market vibrancy. The ICT sector recorded a turnover of 136.707 million shares worth N12.472 billion, while the consumer goods sector traded 118.617 million shares valued at N4.415 billion.
The robust activity in the financial services sector was largely driven by high trading volumes in leading banking stocks, including Fidelity Bank Plc, Access Holdings Plc, and Guaranty Trust Holding Company Plc. These three banking giants collectively accounted for 797.873 million shares valued at N22.043 billion, representing 43.03% of the total equity turnover volume and 39.34% of the value. This concentrated activity highlighted the sustained investor appetite for these prominent banking stocks and their significant influence on overall market performance.
Market sentiment remained predominantly positive, with a greater number of equities appreciating in price compared to the previous week. A total of 64 equities recorded price gains, exceeding the 31 gainers from the prior week. Conversely, 27 equities experienced price declines, a decrease from the 44 decliners in the previous week. This shift in market dynamics indicated a broader positive sentiment among investors. International Breweries Plc emerged as the top gainer, with a remarkable 40% price appreciation, followed by Nascon Allied Industries Plc and Africa Prudential Plc, recording gains of 26.22% and 25.64% respectively.
On the other hand, VFD Group Plc led the decliners, experiencing a substantial 82.19% drop in its share price following a bonus issuance and dividend announcement. Dangote Cement Plc, a heavyweight in the market, also witnessed a 10% decline due to profit-taking activities. These contrasting performances highlighted the inherent volatility within the market, with both significant gains and losses recorded across different equities.
Beyond equities, the exchange-traded funds (ETFs) and bond markets also witnessed activity, albeit at different levels. The ETF market saw a significant increase in trading volume and value, with 442,959 units traded worth N22.567 million, indicating growing interest in alternative investment assets. The bond market, however, experienced a slight slowdown, with a lower volume and value traded compared to the previous week. The Federal Government also listed additional units of its existing bonds on the NGX, further contributing to the depth and breadth of the fixed-income market. This activity reflected the government’s ongoing efforts to raise capital through the debt market and provide investors with more investment options.
