Onome Amuge
Investors in the Nigerian equities market enjoyed a booming trading session at the Nigerian Exchange (NGX) during the final days of 2024 and the early days of 2025, securing a N1.253 trillion weekly profit. This comes on the heels of a N609 billion profit recorded during the previous week, reflecting continued investor confidence in the Nigerian equities market.
The bullish momentum on the NGX led to an increase in market capitalisation, rising from N61.912 trillion at the end of the previous week to N63.166 trillion by the end of the current week. This gain represented a 1.42 percent appreciation in the overall value of the Nigerian equities market, which climbed from 102,133.30 points to 103,586.33 points.
Despite having only three trading sessions for the week due to the New Year holiday break, the Nigerian equities market managed to post a N1.253 trillion profit, thanks to the bullish investor sentiment that reigned supreme in the market.
The week began on a positive note, as investors amassed a N987.18 billion gain on the opening day of trading, Monday, December 30, 2024.
As the last trading day of 2024, the Nigerian equities market wrapped up the year on a slight down note, recording a N135.95 billion loss on Tuesday, December 31, 2024. The market then took a breather, as the federal government designated Wednesday, January 1, 2025, as a public holiday to celebrate the start of the New Year.
The Nigerian equities market made a triumphant start to the New Year on Thursday, January 2, 2025, as investors pocketed N154.73 billion profit at the end of the day’s trading session. The positive momentum carried over to Friday, January 3, 2025, as investors continued to cash in on the bullish sentiment in the market, racking up N247.69 billion gain.
Investors flocked to the trading floor of the NGX for the week, driving a robust trading activity and a substantial uptick in trading volumes. During the three trading sessions, a total of 2.618 billion shares, valued at N69.742 billion, were traded in 47,953 deals, representing a significant increase from the 1.387 billion shares, worth N52.023 billion, that were transacted in 33,411 deals during the previous week.
The Financial Services Industry emerged as the main driver of investor activity this week on the NGX, dominating the trading volumes and deal counts across the three trading sessions. This is as 1.751 billion shares, amounting to N17.079 billion, exchanged hands in 20,595 deals within the sector, accounting for 66.88 percent of the total equity turnover volume and 24.49 percent of the overall equity turnover value.
The Services Industry emerged second place in the NGX trading activity chart for the week, with 205.807 million shares, valued at N1.829 billion, traded in 3,654 deals. It contributed 7.86 percent to the overall equity turnover volume and 2.62 percent to the overall equity turnover value.
The ICT Industry emerged as the third most active sector with 189.938 million shares, amounting to N1.844 billion, transacted in 3,686 deals. It constituted 7.24 percent of the total equity turnover volume and 2.64 percent of the overall equity turnover value.
Amidst the diverse range of stocks traded on the Nigerian Xchange (NGX) floor this week, Royal Exchange Plc, Chams Holding Company Plc, and Universal Insurance Plc captured the attention of investors and emerged as the top three most traded equities in terms of volume.
With a combined total of 612.033 million shares, valued at N773.439 million, transacted in 2,108 deals across the three stocks, these top equities captured 23.38 percent of the total equity turnover volume and 1.11 percent of the overall equity turnover value.
Amidst the positive market sentiments, investor confidence was reflected in the increased number of equities that appreciated in price during the week. A total of eighty-two (82) equities recorded gains, marking an improvement from the sixty-four (64) equities that saw positive price movements during the previous week.
On the flip side, only eighteen (18) equities witnessed price declines, signaling a decrease in bearish sentiments from the previous week’s tally of twenty (20). The number of equities that remained unchanged also declined from sixty-nine (69) in the previous week to fifty-two (52).
Prestige Assurance Plc took centre stage as the biggest gainer for the week, recording a 46.00 percent jump in its share price.
Neimeth International Pharmaceuticals Plc and Sovereign Trust Insurance Plc were also top gainers, with 45.26 percent and 45.16 percent share price increases, respectively.
While some investors celebrated the positive performance of select equities, others experienced declines in their holdings, as PZ Cussons Nigeria Plc, CWG Plc, and Union Dicon Salt Plc saw substantial losses in their respective share prices.
The week’s most significant decline was recorded by PZ Cussons Nigeria Plc, which lost 13.79 percent of its share price, while CWG Plc and Union Dicon Salt Plc also witnessed a 10.83 percent and 10 percent decline respectively, signalling bearish investor sentiment towards these equities.
