Equities market gains N1.43trn in 1 week

By Chukwuma Umeorah

The Nigerian equities market extended its bullish momentum last week, adding N1.43 trillion to investors’ wealth as the benchmark All-Share Index (ASI) surged 1.57 per cent week-on-week to close at 119,995.76 points.

Market capitalisation also advanced by 1.92 per cent to N75.96 trillion, driven by increased demand across several large-, mid-, and small-cap stocks, as well as the listing of an additional 2.94 billion ordinary shares by Stanbic IBTC Holdings Plc.

According to Cowry Asset Management, “This was largely driven by significant buying interest across several large, mid, and small-cap stocks, particularly within the Banking, Consumer Goods, Commodities, and Agriculture sectors.”

Trading activity on the local bourse remained robust, with total turnover of 3.90 billion shares worth N102.22 billion traded in 114,484 deals, compared to 3.57 billion shares valued at N115.40 billion exchanged the previous week in 99,960 deals. The Financial Services industry led the activity chart with 2.03 billion shares worth N41.93 billion traded in 42,959 deals.

The top three equities were Fidelity Bank Plc, Access Holdings Plc, and Zenith Bank Plc which accounted for 864.68 million shares worth N25.96 billion in 15,136 deals, contributing 22.16 per cent and 25.39 per cent to the total turnover volume and value, respectively.

Investor sentiment remained bullish as 78 stocks recorded gains, significantly higher than the 55 gainers in the previous week. Conversely, only 27 stocks declined in price, down from 42 the week before.

Leading the gainers’ chart was Neimeth International Pharmaceuticals, which rose by 60.5 per cent, followed by Ellah Lakes with a 31.3 per cent increase, and International Breweries, which appreciated by 26.4 per cent. Other top performers included CWG (+25.0 per cent), Champion Breweries (+22.0 per cent), Learn Africa (+21.7 per cent), and Beta Glass (+21.0 per cent).

On the other end, Multiverse Mining and Exploration topped the losers’ list, dropping 9.3 per cent, alongside Associated Bus Company (-9.3 per cent), Oando Plc (-7.4 per cent), and BUA Foods (-6.5 per cent).

Sector performance was mostly positive. The Industrial Goods Index led sectoral gains with a 3.92 per cent rise, followed closely by the Consumer Goods Index which gained 3.73 per cent. The Insurance and Banking indices advanced by 3.67 per cent and 2.59 per cent, respectively, while the Oil and Gas Index was the sole laggard, dipping 2.23 per cent due to price declines in Oando and Aradel Holdings.

“The year-to-date return of the NGX advanced to 16.58 per cent, and investors saw a net wealth gain of N1.43 trillion during the week,” Cowry Asset noted.

Despite the market’s impressive rally, analysts are cautioning investors to brace for possible profit-taking in the coming sessions. “With the market appearing to be in overbought territory, there could be mild profit-taking, particularly in some of the large-cap stocks. This pullback, however, may be a healthy one,” Cowry stated in its weekly review.

They added that with the second quarter nearing its close, fund managers are also expected to engage in window dressing, which may further support market momentum in the short term.