Investors gain N708bn as NGX ASI up 1.19%
BY TEMITOPE ADEBAYO
The Nigerian Exchange (NGX) delivered a strong performance last week, with investors recording a gain of N708 billion as the All-Share Index (ASI) rose by 1.19 per cent to close at 99,378.06 points.
The market capitalisation surged to N60.242 trillion, driven by a mix of corporate actions and positive sentiment across key sectors.
MTN Nigeria Communications (MTNN) completed its Series 13 and 14 Commercial Paper issuance, raising N72.2 billion, exceeding its N50 billion target. Nigerian Breweries secured SEC approval for the allotment of 20.71 billion ordinary shares at N26.50 per share under its rights issue, achieving a subscription rate of 91.59 per cent.
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Aradel Holdings Plc also boosted its portfolio by acquiring a 5.14 per cent equity stake in Chappal Energies Mauritius Limited, an energy company with a focus on deep-value and brownfield upstream opportunities in Africa.
Sectoral performances were mixed but leaned bullish. The NGX Oil & Gas sector emerged as the best performer with a 7.61 per cent weekly gain, spurred by strong demand for energy stocks. The NGX Insurance sector rose by 7.52 per cent, while the NGX Consumer Goods and NGX Banking indices gained 1.01 per cent and 0.16 per cent, respectively. Conversely, the NGX Industrial Goods sector fell by 0.60 per cent.
The market breadth remained positive, with 51 equities appreciating, 35 declining, and 67 unchanged. Golden Guinea Breweries led the gainers, rising 60.00 per cent to close at N8.64 per share. Africa Prudential gained 59.72 per cent to N17.25, while Tantalizers appreciated by 52.07 per cent to N1.84. On the losing side, Secure Electronic Technology dropped 22.86 per cent to close at 54 kobo per share, Austin Laz & Company fell 14.74 per cent to N1.62, and Haldane McCall declined 11.11 per cent to N5.20.
Trading activity saw a total turnover of 2.729 billion shares worth N49.845 billion in 43,298 deals, compared to 3.893 billion shares valued at N87.749 billion in 43,868 deals the previous week. The Financial Services Industry dominated, accounting for 1.705 billion shares worth N18.874 billion in 19,203 deals, representing 62.48 per cent of total volume. The ICT sector followed with 286.657 million shares worth N6.346 billion, while the Oil & Gas sector traded 209.404 million shares valued at N10.827 billion in 5,803 deals.
Investor confidence remained strong throughout the week, buoyed by significant corporate actions and sectoral gains. The market is expected to sustain its positive momentum in the near term, provided macroeconomic conditions remain favourable.
Looking forward, Cowry Assets Management Limited said “the Nigerian equities market is well-positioned to sustain its bullish momentum in the coming week. The ongoing year-end rally, coupled with expectations of strong full-year corporate performance, is likely to support buying activities.
“Investors are also expected to closely monitor macroeconomic indicators, particularly the release of November 2024 inflation figures, which could shape sentiment and influence portfolio adjustments. Developments in the foreign exchange market will similarly play a critical role as market participants evaluate the impact of economic data on investment decisions.”
The chief operating officer of InvestData Consulting Limted, Mr. Ambrose Omordion said “sector rotation and portfolio rebalancing continued in the market with investors taking advantage of pullbacks and correction to buy into value.”
