The Nigerian Exchange Limited (NGX) commenced the week with a robust upswing, propelled by renewed investor confidence that translated into a substantial N400 billion surge in market capitalization. This positive momentum drove the All-Share Index (ASI) upwards by 713.58 points, a 0.53% increase, culminating in a closing figure of 135,166.51. This impressive performance elevated the total market capitalization to N85.5 trillion by the end of Monday’s trading session, signaling strong buying pressure across major sectors and reinforcing the positive trend observed in preceding weeks. The market’s upward trajectory reflects a broader positive sentiment, with the ASI recording gains of 2.53% over the past week, 12.64% over the past four weeks, and a remarkable 31.32% year-to-date.
A vibrant trading environment characterized Monday’s session, with 127 listed equities participating in the day’s activities. The trading floor witnessed a dynamic interplay of gains and losses, with 45 stocks advancing and 26 declining. Investor engagement was evident in the high volume of transactions: 795,593,090 shares were exchanged across 37,626 deals, generating a total market value of N23.23 billion. Compared to the previous session, this represented an 11% increase in trading volume and a significant 51% jump in the number of deals, although the total turnover experienced a marginal 4% decline.
Academy Press spearheaded the gainers’ chart, registering a near-maximum allowed daily gain of 9.99% to close at N10.24 per share. Trailing closely behind were Champion Breweries with a 9.98% increase to N13.55, Tripple Gee and Company up 9.97% to N3.86, and May and Baker Nigeria advancing 9.94% to N18.80. Other notable gainers included UACN, which appreciated by 9.92%, and UPDC Real Estate Investment Trust, which added 9.88% to its value, closing at N9.45. This cluster of strong performers indicates broad-based investor confidence and positive sentiment towards specific companies within the market.
Conversely, Livestock Feeds led the decliners, experiencing a 10% drop to close at N8.10. The Initiates Plc followed suit with a 9.98% decline to N14.52, while Ellah Lakes shed 9.08% to finish at N8.91. Nigerian Exchange Group, the operator of the exchange itself, also witnessed a decline, losing 6.02% to close at N75.00. Rounding out the list of notable losers were Thomas Wyatt Nigeria and Africa Prudential, which recorded declines of 5.54% and 4.94% respectively. These declines, while significant for the individual companies, did not overshadow the overall bullish sentiment of the market.
Analyzing trading activity by volume, Fidelity Bank dominated the landscape, exchanging a staggering 123 million units valued at N2.58 billion. FCMB secured the second position with 68.4 million shares traded, followed by Japaul Gold and Ventures with 44.1 million shares. Banking giants Zenith Bank and Access Corporation also featured prominently in the volume rankings, with 31 million and 29 million shares traded respectively. This high volume of trading, particularly in the banking sector, suggests active investor participation and potentially reflects ongoing portfolio adjustments in response to market dynamics.
Shifting focus to the value of trades, Fidelity Bank again took the lead, accounting for N2.58 billion worth of shares exchanged. Zenith Bank followed closely with N2.25 billion, MTN Nigeria with N1.66 billion, and Okomu Oil with N1.60 billion. Dangote Cement, a bellwether stock, recorded trades worth N1.48 billion. The significant trading value in these blue-chip companies underscores the market’s focus on established, large-cap stocks, which are often considered more stable and less volatile.
Sectoral performance mirrored the overall market strength, with most indices closing in positive territory. The Consumer Goods Index, a key indicator of consumer spending and economic activity, surged by 1.29%, extending its year-to-date gains to an impressive 69.49%. The Insurance Index also witnessed a substantial upswing of 2.54%, accumulating a year-to-date gain of 28.23%. The Industrial Index climbed by 0.64%, while the Premium and Main Board Indices registered modest gains of 0.58% and 0.5% respectively. The Top 30 Index, representing the most liquid and capitalized stocks on the exchange, also advanced by 0.44%. This broad-based sectoral strength reinforces the prevailing positive sentiment and suggests continued investor confidence across diverse segments of the Nigerian economy. The market’s robust start to the week signifies growing optimism among investors, particularly in sectors such as banking, consumer goods, and industrials. Market participants appear to be responding to corporate earnings announcements, macroeconomic developments, and strategic positioning for the second half of the year, all contributing to the bullish sentiment.
