NGX rebounds with N607bn profitable week for investors

Onome Amuge

Investors on the Nigerian Exchange Group (NGX) had a highly profitable trading week, recording a capital gain of N607 billion as equity capitalisation soared to N56.00 trillion, a significant increase from the previous week’s figure of N55.39 trillion.

The market’s rebound comes after a loss of N83.55 billion in the prior week, with the bourse experiencing gains in three out of the five trading days.

The All-Share Index (ASI) maintained its upward trajectory, recording a 1.06 percent increase to finish the week at 97,456.62 points, a substantial improvement compared to the 96,433.53 points recorded in the prior week.

The equities market opened the trading week on a negative note, as investors incurred a loss of N111 billion on Monday, September 9, 2024, following a sharp decline in market performance.

The downward trend was short-lived as the market rebounded on Tuesday, September 10, 2024, with investors gaining an impressive N343 billion by the end of the trading session.

Following the previous day’s gains, the Exchange witnessed a sharp reversal on Wednesday, September 11, 2024, as the market suffered a N50 billion loss by the close of trading. 

However, the bulls returned with full force on Thursday, September 12, 2024, as investor sentiment improved, leading to a gain of N178 billion by the end of the trading session.

The Exchange concluded the trading week on a positive note as the market ended the week with a N247 billion gain on Friday, September 13, 2024. The strong performance marked a fitting end to a volatile week, with investors capitalising on emerging opportunities and driving the market upward.

During the trading week, the NGX saw a surge in trading activity, with investors transacting a total of 2.584 billion shares worth N51.205 billion in 50,615 deals, marking an increase from the previous week’s figures of 2.141 billion shares valued at N51.217 billion traded in 55,603 deals.

The financial services industry dominated the market, leading the activity chart with a volume of 1.707 billion shares worth N26.989 billion traded in 19,277 deals, accounting for 66.05 percent of the total equity turnover volume and 52.71 percent of the total equity turnover value.

The NGX also witnessed a high level of trading activity in the oil and gas industry, with 332.829 million shares worth N11.997 billion transacted in 9,956 deals, placing the industry as the second most active sector in the market for the week.

The services industry came in third, recording a turnover of 146.189 million shares worth N530.544 million in 3,404 deals, contributing 5.66 percent to the total equity turnover volume and 1.03 percent to the total equity turnover value.

Jaiz Bank Plc, Zenith Bank Plc, and Japaul Gold & Ventures Plc emerged as the top three most actively traded equities on the NGX. The three companies combined traded 947.855 million shares worth N11.084 billion in 4,822 deals, representing 36.68 percent of the total equity turnover volume and 21.65 percent of the total equity turnover value.

The NGX witnessed a surge in share price growth this week, with CAVERTON taking the lead, recording 59.75 percent increase in its share price, followed by RTBRISCOE, which saw a 42.02 percent rise in its share price.

UPDC also experienced a notable increase in its share price, with a rise of 36.92 percent, indicating strong investor confidence in the company’s growth prospects.

Despite the overall bullish sentiment, LEARNAFRICA emerged as the top loser, with a 22.15 percent decline in its share price, followed by JULIUS BERGER, which shed 17.89 percent of its share prices.

PZ also experienced a significant drop in its share price, declining by 17.63 percent, marking the third-largest share price decline on the NGX for the week.