Onome Amuge
In early 2024, the Nigerian Exchange Limited (NGX) index continued to show strength, posting gains and closing out the week with a positive trend. Investors appeared confident in listed companies, driving up the All-Share index by 6.54 percent to close at 79,664.66 points.
The surge in the NGX index was mirrored by most other indices, with the exception of the NGX Growth and NGX Sovereign Bond Indices, which depreciated by 6.38 percent and 1.21 percent, respectively. Meanwhile, the NGX ASeM index was unchanged.
According to statistics from Nigerian Exchange Limited, the All-Share Index (ASI) increased from 74,773.77 index points on January 2, 2024, to 79,664.66 index points on January 5th, representing a gain of 4,890.89 basis points or 6.54 percent.
The positive movement indicates an overall rise in the market, with stocks generally seeing an increase in value. It is also worth noting that the ASI is a broad measure of the market, and is not indicative of specific sectors or individual stocks. However, the rise in the ASI does suggest that the market is in a healthy state, with investors feeling positive about the outlook for the Nigerian economy.
The NGX data provides further insight into the week-to-date performance of the market, showing that the market capitalisation of listed equities increased from N40.917 trillion at the start of the week to N43.593 trillion at the close of trading. This represents a gain of N2.676 trillion or 6.55 percent for the week.
The strong performance of key stocks such as DANGCEM, AIRTELAFRI, and MTNN were the main drivers of the market’s positive performance for the week. These stocks were able to outperform the market and offset losses in other stocks such as STANBIC, GUINNESS, and CADBURY. Overall, the year-to-date (YTD) return increased to 6.54 percent, which is an encouraging sign for the market.
The week-to-week performance of DANGCEM, which is the most capitalised stock on the NGX, rose by 1.59 percent from N254.90 at the beginning of the week to N258.50 at the end of the week. AIRTELAFRI and MTNN also recorded significant gains, with AIRTELAFRI rising by 5.99 percent and MTNN rising by 7.95 percent. This was in contrast to the performance of STANBIC, GUINNESS, and CADBURY, which all recorded losses of 5.96 percent, 7.58 percent, and 11.05 percent, respectively. However, the losses in these stocks were not enough to outweigh the gains in the other stocks, leading to an overall increase in the market.
In addition to the gains in market capitalisation, there was also an increase in the total turnover of shares traded during the week, with a total of 3.320 billion shares worth N41.755 billion exchanged in 46,994 deals. This is a significant increase from the previous week’s turnover of 1.186 billion shares worth N31.425 billion. The week-on-week analysis of the Nigerian Exchange also showed that the number of deals increased from 23,969 the previous week to 46,994, an increase of 97.12 percent.
Turning to the sectoral analysis of the week’s trading activity, the financial services sector, measured by volume, led the activity chart with 2.399 billion shares traded, representing 72.25 percent of the total equity turnover volume.
Up next was the conglomerates sector, with a total of 213.139 million shares traded during the week. This represents 6.51 percent of the total equity turnover volume. The total value of the shares traded in the conglomerates sector stood at N2.434 billion, representing 5.87 percent of the total equity turnover value. In terms of deals, the conglomerates industry accounted for 2,284 deals, representing 4.81 percent of the total number of deals during the week.
The oil and gas sector was the third largest contributor to the equity turnover volume, with a total of 163.313 million shares traded during the week. This represents 4.96 percent of the total equity turnover volume. The total value of the shares traded in the oil and gas sector was N2.054 billion, representing 4.93 percent of the total equity turnover value. In terms of deals, the oil and gas sector accounted for 3,443 deals, representing 7.10 percent of the total number of deals during the week.
With regards to the top three equities, measured by volume, Fidelity Bank Plc, FCMB Group Plc, and Sterling Financial Holdings Company Plc accounted for a significant portion of the total equity turnover volume and value. In total, these three equities traded 767.964 million shares worth N7.289 billion, representing 23.13 percent and 17.46 percent of the total equity turnover volume and value, respectively. These three equities also accounted for 4,589 deals, representing 9.56 percent of the total number of deals during the week.
