Equity investors enjoy 60.9% gains as NGX reaches

By Chukwuma Umeorah

Equities investors gained about N3.34 trillion in one week as the Nigerian Exchange (NGX) sustained its rally, pushing year-to-date returns to 60.87 per cent and driving the benchmark index to a fresh high.

Data from the weekly market report showed that the All-Share Index (ASI) rose by 2.27 per cent week-on-week to close at 250,330.92 points, while market capitalisation advanced to N160.44 trillion from N157.10 trillion recorded the previous week.

Similarly, Cowry Asset Management said that sustained gains in key counters continued to support bullish sentiment across the equities market, with investors maintaining selective buying interest in banking, industrial and consumer goods stocks.

The exchange recorded a total turnover of 7.772 billion shares worth N374.04 billion in 402,945 deals during the week, higher than the 7.075 billion shares valued at N324.35 billion traded in the preceding week.

Financial services stocks dominated market activity, accounting for 4.774 billion shares valued at N196.35 billion in 153,515 deals, representing 61.43 per cent and 52.49 per cent of total equity turnover volume and value respectively. ICT stocks followed with 1.118 billion shares worth N57.83 billion, while the services sector recorded 601.75 million shares valued at N6.98 billion.

Trading in First HoldCo Plc, United Bank for Africa Plc and Chams Holding Company Plc accounted for 2.195 billion shares worth N99.82 billion in 30,056 deals, contributing 28.24 per cent and 26.69 per cent to total equity turnover volume and value respectively.

Sectoral indices also closed largely positive during the week. The NGX Industrial Goods Index rose by 4.66 per cent, while the Banking and Insurance indices appreciated by 2.82 per cent and 2.74 per cent respectively. In contrast, the Oil and Gas Index declined by 1.19 per cent.

Market breadth remained positive as 74 equities appreciated in price, compared with 24 losers, while 48 stocks closed unchanged. Among the top gainers, Berger Paints Plc rose by 55.57 per cent to close at N168.95 per share, while SCOA Nigeria Plc gained 45.92 per cent. DAAR Communications Plc appreciated by 42.41 per cent, while Fidson Healthcare Plc and Learn Africa Plc advanced by 32.52 per cent and 32.32 per cent respectively.

On the losers’ chart, Zichis Agro Allied Industries Plc shed 11.78 per cent, while The Initiates Plc and NCR Nigeria Plc declined by 10.03 per cent and 10 per cent respectively.

The week also witnessed fresh listings on the exchange. Fidelity Bank Plc listed an additional 12.97 billion ordinary shares arising from its private placement, increasing its total issued shares to 63.17 billion units.

In its outlook, Cowry Research said the market is expected to remain positive in the near term, although gains may moderate as investors take profit after the recent rally. “Selective buying is likely to persist in strong sectors such as banking, industrial goods, and consumer stocks, while oil & gas and commodity counters may remain weak. Overall sentiment stays constructive, but volatility may increase as the market consolidates recent gains and reacts to macroeconomic developments,” the report stated.