NGX index rises 1.46% on Q1 earnings boost
BY MOTOLANI OSENI
Investor sentiment turned sharply positive last week as the Nigerian Exchange (NGX) sustained its bullish momentum, driven by the release of strong first-quarter (Q1) 2025 earnings from several listed companies. The renewed optimism lifted the benchmark All-Share Index by 1.46 per cent to close at 105,752.61 points.
Correspondingly, the market capitalisation soared by N966 billion to settle at N66.465 trillion, reflecting robust investor appetite across major sectors.
Confidence was further bolstered by the listing by introduction of Legend Internet Plc, which injected two billion ordinary shares of 50 kobo each into the market, adding about N11.28 billion to the bourse’s overall capitalisation.
The equities market maintained its upward trajectory past week, buoyed by renewed investor confidence, robust earnings releases for Q1 2025, and continued dividend declarations. In what was a holiday-shortened trading week due to the Easter celebration, the Nigerian Exchange still witnessed a resurgence in activity, largely driven by strong appetite for financial and consumer goods stocks.
Sectoral performance largely mirrored the positive mood, with the NGX Consumer Goods Index leading gains at 8.57 per cent week-on-week. The NGX Insurance Index followed with a 7.30 per cent rise, while the NGX Banking and NGX Commodity Indices appreciated by 5.06 per cent and 0.04 per cent respectively. However, the NGX Oil & Gas and NGX Industrial Goods Indices bucked the trend, dipping by 0.07 per cent and 3.43 per cent respectively.
Market breadth remained firmly positive as 64 equities recorded price gains against 27 decliners, while 57 equities closed flat. International Breweries emerged as the top gainer, rallying 40.00 per cent to close at N7.70 per share. NASCON Allied Industries and Africa Prudential followed with respective gains of 26.22 per cent and 25.64 per cent.
On the losers’ table, VFD Group suffered the steepest loss, plunging 82.19 per cent to close at N17.10 per share. John Holt declined by 18.60 per cent to N6.30, while Dangote Cement shed 10.00 per cent to close at N432.00 per share.
Overall, investors traded 1.854 billion shares worth N56.025 billion in 51,386 deals, compared to 1.525 billion shares valued at N43.006 billion exchanged in 51,156 deals the previous week. The Financial Services sector dominated trading activity, accounting for 68.28 per cent and 52.48 per cent of total volume and value respectively, with 1.266 billion shares worth N29.400 billion traded in 24,351 deals.
The ICT sector followed with 136.707 million shares valued at N12.472 billion, while the Consumer Goods sector recorded 118.617 million shares worth N4.415 billion. Fidelity Bank, Access Holdings, and Guaranty Trust Holding Company (GTCO) were the most active stocks, collectively contributing 43.03 per cent and 39.34 per cent to total equity turnover volume and value respectively, as investors sought exposure to fundamentally strong counters amid the earnings season rally.
READ ALSO: Kidnappers open fire on travellers, abduct passengers, kill driver in Zamfara
Analysts have said the Nigerian stock market is expected to close positive as investors seek bargain-hunting opportunities.
Going into the new week, analysts at Cowry Assets Management Limited said they expect the bullish sentiment to persist as investors continue to react positively to ongoing corporate earnings releases.
They added that the market is likely to remain dominated by fundamentals, with particular attention paid to dividend-paying stocks and companies with strong Q1 outlooks.
However, investors are advised to remain discerning and prioritise fundamentally sound equities, as macroeconomic headwinds and profit-taking tendencies may temper gains in select segments.
