Nigerian equities market gains 1.38% as investors pocket N884bn w/w
BY TEMITOPE ADEBAYO
The Nigerian Exchange (NGX) maintained its bullish momentum last week, as the benchmark All-Share Index (ASI) rose by 1.38 per cent week-on-week to close at 105,933.03 points. The market capitalisation increased by N884 billion, closing at N65.592 trillion.
Most sectoral indices recorded gains, except for the NGX Consumer Goods index, which declined by 0.60 per cent week-on-week.
The NGX Banking index led the gainers with a 4.66 per cent increase, followed by the NGX Insurance index, which rose by 1.61 per cent. The NGX Commodity index gained 1.29 per cent, while the NGX Industrial and NGX Oil & Gas indices advanced by 0.85 per cent and 0.56 per cent, respectively.
Market breadth was positive, with 58 equities recording gains, 34 declining, and 58 remaining unchanged. UPDC led the gainers, surging 38.50 per cent to close at N2.59 per share. Eterna followed with a 32.79 per cent gain to N36.65, while International Energy Insurance rose 29.53 per cent to N2.50 per share.
On the losers’ table, SUNU Assurance declined by 12.87 per cent to close at N5.01 per share, while University Press and Multiverse Mining & Exploration lost 10.00 per cent and 9.95 per cent, closing at N5.04 and N9.05 per share, respectively.
Market activity remained strong, with investors trading 3.051 billion shares worth N98.350 billion in 72,535 deals, compared to the previous week’s 3.245 billion shares valued at N69.198 billion in 77,270 deals. The Financial Services Industry dominated trading, accounting for 2.260 billion shares worth N52.190 billion in 33,724 deals, contributing 74.08 per cent and 53.07 per cent to the total turnover volume and value, respectively.
The Consumer Goods sector followed with 141.684 million shares worth N4.018 billion in 7,218 deals, while the Industrial Goods sector recorded 104.862 million shares valued at N3.300 billion in 3,995 deals.
Access Holdings, FBN Holdings (FBNH), and Zenith Bank led trading activity, accounting for 1.176 billion shares worth N38.469 billion in 9,506 deals, representing 38.56 per cent and 39.11 per cent of total equity turnover volume and value, respectively.
To this end, analysts expected sustained positive sentiments on the Nigerian stock market to continue this week as more companies released 2024 financial year end results on the Nigerian Exchange (NGX) Limited.
The equities market commenced February on a positive note, extending its bullish streak. Investors continued to take positions in equities, driven by expectations of more impressive earnings releases and the anticipated January 2025 Consumer Price Index (CPI) data under the new methodology.
Looking ahead to the week, analysts at Cowry Assets Management Limited said, “The bullish momentum is expected to continue, driven by the release of more impressive Q4 earnings reports. These reports are expected to provide insights into potential dividend payouts, based on corporate earnings performance and dividend policies.
“Additionally, macroeconomic data and upcoming economic events will shape market sentiment in the coming week. Investors will keep an eye on corporate disclosures and broader economic indicators to make informed decisions.”
United Capital Plc said, “Looking forward, the equities market is expected to maintain its positive momentum as investors continue to position themselves ahead of the full year, 2024 earnings season and possible corporate action declarations. Nevertheless, given the elevated interest rate environment in the fixed-income market, we still expect bearish sentiments to linger in the background.”
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On market outlook, the chief operating officer of InvestData Consulting Limited, Ambrose Omordion stated that, “we expect mixed sentiments to continue as investors’ confidence boost positioning on strong corporate numbers, while rebalancing their portfolios midst high inflation and earnings expectations. Also, sector rotation and portfolio rebalancing continued in the market with investors taking advantage of price correction to buy into value.”
He added that, this is amid the volatility and pullbacks that add more strength to upside potential, saying, ‘investors should take advantage of price correction. Also looking at the trends and events across the globe and domestically.’
