Financial Services, Consumer Goods Lead As NGX Hits N60trn Cap

The Nigerian Exchange (NGX) recorded a positive trading week, as a total of 2.14 billion shares valued at N85.95bn exchanged hands across 41,217 deals, marking a significant increase from the prior week’s 1.45 billion shares worth N73.89bn, which were traded in 39,546 deals.

This surge in trading activity underscores a bullish sentiment among investors, driven by growth in multiple sectors.

The NGX All-Share Index (ASI) climbed 1.41 per cent, closing the week at 99,448.91 points, while the Market Capitalization rose to N60.26trn, reinforcing the Nigerian capital market’s resilience and steady growth trajectory.

Gains were widespread across most sector indices, with notable exceptions in the NGX Consumer Goods and NGX Lotus II indices, which declined by 0.84 per cent and 1.19 per cent, respectively. The NGX ASeM index remained flat, showing stability within smaller-cap companies.

The Financial Services Industry led the trading volume for the week, with 1.18 billion shares valued at N23.74bn exchanged in 19,570 transactions, contributing 54.91 per cent of the total volume and 27.62 per cent of the market’s value.

This sector’s dominance highlights the sustained investor interest in financial stocks, likely fueled by favorable earnings reports and a strong outlook for the sector.

The Consumer Goods Industry followed with 366.92 million shares worth N4.67bn traded in 4,004 deals, reflecting steady interest in this sector despite inflationary pressures impacting consumer purchasing power.

The Oil and Gas Industry took third place, with a turnover of 228.44 million shares valued at N52.64bn across 7,547 deals, underscoring the continued strategic importance of oil and gas equities within Nigeria’s market.

Among the top-performing equities were United Bank for Africa Plc, Champion Breweries Plc, and Japaul Gold and Ventures Plc.

Together, these three companies accounted for 828.82 million shares worth N12.32bn traded in 5,080 deals, representing 38.70 per cent of the total weekly turnover volume and 14.33 per cent of the total value, indicating a concentration of high-value trades in a few prominent stocks.

The market also saw notable price movements, with 58 equities appreciating in value, up from 33 the previous week, signifying broad-based positive sentiment.

Conversely, 18 equities recorded price declines, a decrease from the 43 recorded in the prior week, reflecting a decline in selling pressure. Seventy-six equities remained unchanged, maintaining stability in line with last week’s performance.

The rise in weekly turnover and upward movement of the NGX All-Share Index reflects investor optimism and strong market fundamentals.

Analysts attributed the growth to favorable earnings releases and an optimistic outlook on Nigeria’s macroeconomic environment, particularly in the finance and energy sectors.

With this positive momentum, the NGX is poised to continue attracting local and international investors as it strives for higher levels of activity and capitalization.