Equities market gains N1.81trn in 1 week, ASI up 2.57%

By Chukwuma Umeorah

The equities market advanced strongly in the week ended June 5, 2025, as the NGX All-Share Index(ASI) climbed 2.57 per cent to close at 114,616.75 points, lifting market capitalisation by N1.81 trillion to N72.275 trillion.

This was spurred majorly by broad-based gains across financial services, energy, telecoms, and consumer goods sectors, reflecting heightened investor interest and early-month portfolio rebalancing.

The market operated for only four trading days due to Eid-el-Kabir celebration. Despite the shortened week, investor activity remained vibrant, with a total turnover of 3.214 billion shares worth N76.348 billion traded in 64,156 deals. This marked a decline from the previous week’s 3.794 billion shares valued at N119.394 billion in 89,636 deals, suggesting a more selective accumulation strategy by investors.

Cowry Asset Management in their weekly report observed that the gains recorded in all four trading sessions “were underpinned by renewed investor interest in financial services, energy, telecoms, and FMCG stocks. The rally was driven by portfolio rebalancing at the start of the new trading month, bolstered by positive earnings season tailwinds and a recent Purchasing Managers’ Index (PMI) report signaling economic resilience.”

The year-to-date return for the NGX All-Share Index strengthened to 11.36 per cent reflecting sustained investor confidence in Nigeria’s equities market despite global and domestic economic challenges.

During the week under review, the Financial Services sector led the market’s activity, contributing 71.96 per cent to total equity turnover volume and 68.43 per cent to value, with 2.313 billion shares worth N52.241 billion traded in 27,326 deals. The ICT sector followed, with 301.996 million shares valued at N5.026 billion in 4,137 deals, while the Consumer Goods sector recorded a turnover of 144.538 million shares worth N5.632 billion in 8,093 deals.

Notably, trading in Fidelity Bank Plc, Legend Internet Plc, and Guaranty Trust Holding Company Plc accounted for 1.545 billion shares worth N34.446 billion, representing 48.06 per cent of the total equity turnover volume and 45.12% of the value.

Market breadth remained positive, with 53 equities appreciating in price compared to 43 decliners. Top performers included Oando Plc, which surged 25.77 per cent from N45.20 to N56.85, followed by Lasaco Assurance Plc gaining 21.62 per cent from N2.59 to N3.15 and Multiverse grew by 20.39 per cent from N7.60 to N9.15.Other notable gainers were Cornerstone Insurance Plc (19.51 per cent) and First Holdco Plc (17.60 per cent).

On the downside, ABC Plc led decliners, shedding 18.64 per cent to close at N2.40, while Julius Berger Nig. Plc fell 13.50 per cent to N118.50, and Legend Internet Plc dropped 13.31 per cent to N5.34.

Sectoral performance was uniformly positive, with the NGX Banking Index leading gains at 4.69 per cent , driven by strong showings from AccessCorp, Wema Bank, GTCO, and First Holdco. The NGX Insurance Index rose 3.36 per cent, supported by Lasaco, Wapic, Guinea Insurance, and Cornerstone. The Oil & Gas Index advanced 3.33 per cent propelled by Oando and JapaulGold, while the Consumer Goods Index gained 2.33 per cent, led by May & Baker, Fidson Healthcare, International Breweries, and Guinness.

The Industrial Goods Index saw a modest 1.18 per cent increase, with contributions from Dangote Cement, Berger Paints, and Lafarge Africa.

For the trading week ahead, Cowry analysts notes, “We expect the prevailing trend to persist in the near term as investors continue to realign their portfolios in anticipation of further earnings releases and macroeconomic data, particularly Nigeria’s Q1 2025 GDP numbers.” However, they cautioned that trading may remain moderate due to a cautious stance among some investors awaiting fresh catalysts.