Equities market rises by 1.80% as investors gain N1.14trn W-o-W
…Stock market to sustain bullish momentum this week-Analysts
BY MOTOLANI OSENI
The Nigerian Exchange (NGX) closed the week on a positive note, with the All-Share Index advancing by 1.80 per cent week-on-week (W-o-W) to 105,451.06 points. This rally saw the market capitalisation increase by N1.14 trillion, finishing at N64.303 trillion.
Despite the overall market uptick, sectoral performance painted a mixed picture. The NGX Banking Index emerged as the strongest performer, gaining 1.94 per cent W-o-W.
However, the NGX Insurance Index led decliners, falling 6.91 per cent. Both the NGX Consumer Goods and NGX Oil & Gas indices dropped by 0.34 per cent, while the NGX Industrial Index recorded a marginal loss of 0.26 per cent.
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Market breadth remained positive, with 51 equities appreciating, 39 declining, and 62 remaining unchanged. Multiverse Mining and Exploration topped the gainers’ chart, surging 53.42 per cent to close at N12.35 per share. Honeywell Flour Mill followed with a 31.67 per cent rise to N10.02, while DAAR Communications gained 25.71 per cent to close at 88 kobo per share.
On the laggards’ table, SUNU Assurance led the pack with a 36.52 per cent drop to N7.30 per share. Caverton Offshore Support Group and Consolidated Hallmark Holdings both shed 15.00 per cent to close at N2.38 and N3.40 respectively, while R T Briscoe fell by 14.33 per cent to N2.57 per share.
Trading activity was robust, with a total of 4.698 billion shares worth N85.043 billion exchanged in 72,562 deals. This marked a significant improvement compared to the previous week’s turnover of 2.618 billion shares valued at N69.742 billion in 47,953 deals.
The Financial Services Industry dominated trading activity, accounting for 3.470 billion shares worth N40.791 billion in 34,364 deals, representing 73.86 per cent and 47.97 per cent of total equity turnover volume and value, respectively. The Services Industry followed, trading 407.032 million shares valued at N2.226 billion, while the ICT Industry recorded 237.680 million shares worth N3.628 billion.
Top traded equities for the week included Wema Bank, FBN Holdings, and Universal Insurance, which collectively accounted for 1.679 billion shares valued at N20.838 billion in 4,922 deals, representing 35.74 per cent of total turnover volume and 24.50 per cent of value.
Looking ahead, Cowry Assets Management Limited said, “We expect the bullish momentum in the local bourse to persist in the coming week, supported by anticipation of Q4 2024 unaudited financial results and preparations for the dividend earning season.
“Positive sentiment is likely to prevail as stocks continue to reach new historical highs, bolstered by favourable market valuations and outlooks. Nonetheless, we advise investors to focus on fundamentally sound stocks to maximise returns amidst the ongoing rally.”
The chief operating officer of InvestData Consulting Limited, Mr. Ambrose Omordion said the Nigerian stock market displayed positive growth last week, with significant increases in both the NGX All-Share Index and market capitalisation.
“As the market progresses into the year, investors will be watching closely for further developments in the local economy and the performance of key industries, particularly in light of global economic trends”, he added.
