The Nigerian Exchange (NGX) experienced a significant surge in activity and market capitalization during the reviewed week, driven primarily by robust investor interest in banking sector stocks. This positive trend propelled the All-Share Index upwards by 2.35%, reaching 118,138.22 points. Concurrently, the market capitalization expanded by a notable N1.875 trillion (2.40%), closing at N74.534 trillion, a substantial increase from the preceding week’s N72.659 trillion. This bullish performance signifies heightened investor confidence and positive sentiment towards the Nigerian stock market, particularly within the financial sector.
Trading activity on the NGX witnessed a significant uptick, with a total turnover of 3.566 billion shares exchanged, representing a value of N115.403 billion across 99,960 deals. This marked a substantial surge compared to the previous week’s figures of 2.057 billion shares worth N51.015 billion traded in 65,016 deals. This surge in trading volume and value underscores the intensified market participation and increased liquidity within the NGX, further contributing to the overall buoyant market sentiment.
The financial services sector dominated trading activities, accounting for the majority of transactions. A total of 2.166 billion shares, valued at N62.046 billion, were traded within this sector across 45,851 deals. This represents a dominant 60.73% and 53.76% of the total equity turnover volume and value, respectively. Following the financial services sector, the consumer goods industry recorded a turnover of 580.893 million shares worth N10.896 billion in 10,909 deals. The services industry ranked third, with 193.300 million shares valued at N2.449 billion traded across 6,306 deals. This sector-specific breakdown highlights the concentrated investor interest in financial stocks, which played a crucial role in driving the overall market performance during the week.
Zenith Bank Plc, Champion Breweries Plc, and Access Holdings Plc emerged as the most actively traded equities by volume, accounting for a combined 1.003 billion shares worth N26.076 billion across 14,232 deals. These three equities alone constituted a significant portion of the overall market activity, representing 28.14% and 22.60% of the total equity turnover volume and value, respectively. Their dominance underscores the strong investor appetite for these particular stocks and further emphasizes the significant influence of the banking sector on the NGX’s performance.
Beyond the equities market, other segments of the NGX also witnessed trading activity. In the Exchange Traded Products (ETPs) segment, 31,960 units valued at N5.800 million were traded in 144 deals. This contrasts with the previous week’s 24,880 units worth N8.881 million traded in 92 deals. The bond market experienced a notable surge, with 106,836 units valued at N104.905 million traded in 58 deals, a significant jump from the 38,597 units worth N37.536 million exchanged in 20 deals the previous week. These figures suggest diversified investor interest across various asset classes, extending beyond traditional equities.
Sectoral performance on the NGX was broadly positive, with gains observed across most indices. However, the Industrial Goods and Sovereign Bond indices deviated from this trend, recording declines of 0.36% and 0.78%, respectively. The ASeM Index remained unchanged. In terms of individual stock performance, 55 equities registered gains, mirroring the previous week’s figure. Conversely, 42 equities experienced price declines, an increase from the 39 declines recorded in the prior week. A total of 51 equities remained unchanged, a slight decrease from the 54 recorded the week before. This mixed performance suggests underlying sector-specific dynamics influencing individual stock movements, notwithstanding the overall positive market sentiment. Notable gainers included Ellah Lakes Plc, Beta Glass Plc, LivingTrust Mortgage Bank Plc, and Guaranty Trust Holding Company Plc, while Nigerian Flour Mills Plc, Sunu Assurances Nigeria Plc, and Oando Plc led the decliners. Regulatory updates included the lifting of the suspension on trading in Thomas Wyatt Nigeria Plc shares, a rights issue by Chams Holding Company Plc, and the listing of additional shares by Sterling Financial Holdings Company Plc. The NGX also listed new futures contracts, further diversifying investment options available on the exchange. Overall, the reviewed week marked a positive period for the NGX, characterized by increased trading activity, significant market capitalization growth, and predominantly positive sectoral performance, largely driven by strong investor interest in key banking stocks.
