Equities rally delivers N794bn boost to investor portfolios on NGX
Onome Amuge
The Nigerian equities market made a strong rebound for the week, as investors recouped N794 billion on the trading floor of the Nigerian Exchange (NGX), defying the previous week’s N1.452 trillion loss.
Reflecting the market’s rebound, the market capitalisation of the Nigerian equities market rose N794 billion to close the week at N63.645 trillion, up from the N62.851 trillion recorded at the close of the previous week.
However, the All-Share Index (ASI), a key indicator of the market’s overall performance, recorded a 1.22 percent decline from its previous week’s close of 102,353.68 points to close the week at 103,598.30 points.
The NGX saw an uptick in investor activity as investors traded a combined 3.132 billion shares valued at N76.552 billion across 61,456 deals on the trading floor, an increase from the previous week’s figures of 2.252 billion shares exchanged at a total value of N58.831 billion across 63,657 deals.
The Nigerian equities market saw a slightly more favourable week for investors, with 44 equities recording gains in price, a notable improvement over the 33 that appreciated in the preceding week. In contrast, 44 equities recorded price declines, a decline from the 57 that decreased in the previous week.
Meanwhile, 64 equities remained unchanged during the week, a higher number than the 62 that retained their prices in the prior week.
The Nigerian equities market kicked off the trading week with a N10.24 billion gain on Monday, January 20, 2025.
The market’s upward trend continued on Tuesday, January 21, 2025, as investors recorded N471.37 billion profit.
The bulls’ early week rally came to a halt as the bears took hold of the market on Wednesday, January 22, 2025, causing investors to lose N185.36bn in a single day.
The bearish trend persisted into Thursday, January 23, 2025, with investors suffering further losses of N289.85 billion.
The Nigerian equities market staged a comeback on Friday, January 24, 2025, with investors regaining their footing to record N497.68 billion profit at the end of the trading session.
Financial Services dominated the trading activity chart with 2.336 billion shares valued at N33.014 billion changing hands in a total of 27,100 deals, representing 74.59 percent of the total equity turnover volume and 43.13 percent of the total value.
In second place was the Services industry, contributing 284.988 million shares worth N807.646 million, traded in 4,638 deals.
The Consumer Goods Industry had a turnover of 139.010 million shares worth N5.704 billion in 6,469 deals to emerge third place.
Wema Bank Plc, Secure Electronic Technology Plc, and Access Holdings Plc emerged as the top three most traded equities in the Nigerian market during the week, accounting for 1.437 billion shares valued at N15.406 billion traded in 5,292 deals. These top performers contributed 45.89 percent to the total equity turnover volume and 20.13 percent to the total value.
Leading the charge in terms of share price increase, SCOA Nig Plc recorded a 59.68 percent jump in its stock price, closely followed by UPDC Plc, which recorded a 19.05 percent price hike.
Coronation Insurance Plc also made notable gains, with a 15.32 percent increase in its share price
On the other hand, Sunu Assurances Nigeria Plc led the pack in share price decline, recording a 25.11 percent drop. Eunisell Interlinked Plc followed close behind, shedding 18.95 percent of its share price, while John Holt Plc also suffered a 18.47 percent decline in its share price.
Cowry Asset analysts, in their assessment of the market, projected that the current positive market sentiment is expected to persist into the coming week, supported by the release of corporate earnings and anticipated corporate actions.
“The results published so far have been encouraging, providing a foundation for sustained price support and attracting fresh capital inflows into the market.
Moreover, the prevailing low valuation of many stocks continues to create opportunities for investors to buy into value and strategically reposition their portfolios,” they stated.
While the Cowry Asset analysts expect the positive market sentiment to continue, they also cautioned investors to brace for potential bouts of volatility as companies begin to report their quarterly earnings. The earnings season, they noted, can bring about mixed signals regarding the performance and outlook of companies, which may impact the market in unpredictable ways, particularly for companies with December year-end financials.