NGX bulls push ASI up by 0.66%, adding N438bn to market capitalization

BY TEMITOPE ADEBAYO

The Nigerian Stock Exchange (NGX) saw positive performance in the past week as the All-Share Index (ASI) rose by 0.66 per cent week-on-week (W-O-W), closing at 105,660.64 points.

The market capitalization of listed equities also gained N438 billion, reaching N66.257 trillion by the end of the week. With the bulls taking charge in three out of five trading sessions, the year-to-date (YTD) return for the ASI improved to 2.66 per cent, reflecting a growing sense of optimism among investors.

Sector performance was predominantly bullish, with the NGX Banking index leading the pack, up by 4.28 per cent W-O-W. The NGX Insurance index followed closely, gaining 3.21 per cent, while the NGX Consumer Goods and NGX Industrial indices saw modest increases of 0.12 per cent and 0.01 per cent, respectively.

In contrast, the NGX Oil & Gas index recorded a decline of 1.63 per cent, and the NGX Commodity index dropped 0.76 per cent during the week.

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Market breadth remained positive, with 43 stocks appreciating, 36 declining, and 71 unchanged. Mutual Benefits Assurance topped the gainers’ list, surging 56.72 per cent to close at N1.05 per share, followed by SUNU Assurance, which gained 33.27 per cent to settle at N6.65. Abbey Mortgage Bank also made strong gains, rising by 31.39 per cent to N4.73 per share.

On the other hand, Africa Prudential led the decliners, falling by 60.45 per cent to close at N13.05 per share. CWG followed with an 11.11 per cent loss, closing at N8.00, while John Holt fell 10.00 per cent to end the week at N7.74 per share.

In terms of market activity, a total turnover of 7.521 billion shares, valued at N398.949 billion, was traded in 61,312 deals during the week. This marks a significant increase from the previous week, which saw 2.902 billion shares worth N48.064 billion exchanged in 57,044 deals.

The Industrial Goods sector dominated trading volume, accounting for 65.46 per cent of the total equity turnover, with 4.923 billion shares worth N331.999 billion traded in 2,969 deals. The Financial Services sector followed, contributing 2.092 billion shares worth N31.744 billion in 32,421 deals.

Trading in the top equities, including Lafarge Africa, Sovereign Trust Insurance, and Cutix, accounted for a significant portion of the week’s turnover, contributing 73.73 per cent of the total volume and 83.31 per cent of the total value traded.

Looking ahead, Cowry Assets Management Limited said, “the bullish trend is expected to persist as the market fully enters the earnings season, with dividend announcements likely to sustain investor interest in blue-chip stocks. However, portfolio rebalancing activities and profit-taking could introduce some volatility as investors assess corporate earnings results and macroeconomic data.

“Against this backdrop, we continue to advise investors to focus on fundamentally strong stocks with consistent earnings growth and resilient business models, ensuring sustainable long-term value creation.”

On market outlook, the chief operating officer of InvestData Consulting Limited, Mr. Ambrose Omordion expected mixed sentiment to continue on bargain hunting and profit taking, as more corporate earnings are expected to hit the market with dividend announcement.

He noted that “also, sector rotation and portfolio rebalancing continued in the market with investors taking advantage of price correction to buy into value. This is amid the volatility and pullbacks that add more strength to upside potential. Consequently, investors should take advantage of price correction. Also looking at the trends and events across the globe and domestically.”