The equities market ended the week on a positive note, adding nearly N924 billion in investor wealth despite weaker participation and a negative market breadth that reflected profit-taking across stocks.
Data from the Nigerian Exchange Limited (NGX) showed that the benchmark NGX All-Share Index (ASI) rose by 0.73 per cent week-on-week to close at 198,407.30 points, compared with 196,968.15 points in the previous week.
In line with the index’s performance, total market capitalisation climbed to N127.36 trillion from N126.47 trillion, translating to N923 billion increase in value. The gain further strengthened the market’s year-to-date return to 27.50 per cent, underscoring sustained bullish momentum in Nigeria’s domestic equity market.
The market recorded gains in three of the five trading sessions during the week, reinforcing the gradual consolidation that has followed recent rallies.
Trading opened on a positive note on Monday, March 9, with investors adding N146.87 billion. However, bearish sentiment resurfaced on Tuesday and Wednesday as investors lost N725.94 billion and N107.58 billion respectively amid profit-taking. The market rebounded strongly on Thursday and Friday, posting gains of N648.46 billion and N962 billion to close the week firmly in positive territory.
Despite the headline gains, the underlying market tone remained cautious. Market breadth closed negative at 0.56x, as 34 equities advanced while 61 declined, indicationg that a larger number of stocks lost value even as the overall index edged higher.
Analysts say the pattern reflects portfolio rebalancing and profit-taking in stocks that have recently appreciated.
Investor participation also eased during the week, with trading activity declining across key metrics.
Total turnover stood at 3.32 billion shares worth N164.85 billion in 318,907 deals. This represents a decline from the previous week’s 3.69 billion shares valued at N177.69 billion traded in 370,980 deals.
The Financial Services sector dominated market activity, accounting for 2.18 billion shares valued at N59.81 billion in 124,992 deals, representing 65.61 per cent and 36.28 per cent of total equity turnover volume and value respectively.
The Oil and Gas sector followed with 207.69 million shares worth N27.61 billion, while the Consumer Goods sector ranked third with 189.63 million shares valued at N11.85 billion.
Trading in Access Holdings Plc, Fortis Global Insurance Plc and First Holdco Plc led activity by volume, jointly accounting for 677.31 million shares worth N14.56 billion across 17,346 deals.
Sectoral performance was largely mixed during the week.
The banking, insurance and commodity indices declined by 1.04 per cent, 4.59 per cent and 0.48 per cent respectively, reflecting profit-taking pressures.
In contrast, the consumer goods, oil and gas and industrial indices gained 0.63 per cent, 1.50 percent and 5.73 per cent respectively, indicating renewed buying interest in selected counters.
At the stock level, Premier Paints Plc emerged as the week’s top gainer with a 32.9 percent increase in share price.
Other notable gainers included Conoil Plc, which rose by 20.9 per cent, BUA Cement Plc which gained 20.0 per cent, Fidson Healthcare Plc with a 19.0 per cent increase, and Omatek Ventures Plc which advanced by 18.2 per cent.
On the downside, SCOA Nigeria Plc led the losers after shedding 34.1 per cent of its share price, followed by Fortis Global Insurance Plc which declined by 20.8 per cent, Sovereign Trust Insurance Plc which dropped 20.7 per cent, Alexandria Engineering Plc which fell by 18.7 per cent, and LivingTrust Mortgage Bank Plc which lost 17.4 per cent.
Analysts at Cowry Asset Management Limited said the market could remain mixed in the near term as investors continue to rebalance portfolios and lock in profits on recently rallied stocks.
According to the firm’s research desk, selective demand for fundamentally strong companies and dividend-paying stocks could help stabilise the market.
“Selective buying interest in fundamentally sound companies and dividend-paying stocks could provide some support to the market,” Cowry Research said.
However, analysts expect trading to remain cautious as investors track macroeconomic signals and corporate earnings expectations in the coming weeks.
