Nigerian equities march to N454.86bn on NGX bullish beat

Business a.m.

Investors in the Nigerian equities market were rewarded with a profitable trading week as the Nigerian Xchange Group (NGX) recorded a rise in market capitalisation to N56.46 trillion, a N454.86 billion increase from the prior week’s N56.00 trillion. 

The profitable week for investors follows on the heels of a successful previous week, where gains of N607 billion were realised.

In spite of the reduced trading week due to the federal government’s holiday declaration, the Nigerian Xchange Group (NGX) experienced three out of four trading days marked by gains. The overall market performance was positive, driving market capitalisation up to N56.46 trillion from N56.00 trillion in the preceding week, indicating an uplifting shift in investor sentiment.

Reflecting the buoyant sentiment in the market, the All-Share Index (ASI) rose 0.81 percent to 98,247.99 points at the close of the shortened trading week, up from 97,456.62 points recorded the week prior.

Though trading commenced on Tuesday, September 17, 2024, following the holiday on Monday, investors demonstrated unwavering appetite for profit-making, with gains of N131 billion registered at the end of the day’s trading session.

Following the upward trajectory from the previous day, the Nigerian equities market registered additional gains of N313 billion on Wednesday, September 18, 2024.

However, a minor market correction was observed on Thursday, September 19, 2024, with investors suffering a loss of N130 billion.

The week closed on a positive note on Friday, September 20, 2024, with investors making profits of N140 billion at the end of trading session, an affirmation of the market’s overall bullish sentiment.

The trading week saw a dip in trading activity compared to the previous week, as investors on the NGX transacted a total of 1.860 billion shares valued at N38.445 billion in 40,228 deals. This contrasted with the comparatively higher trading volume and value recorded in the preceding week, which witnessed 2.584 billion shares worth N51.205 billion exchanged in 50,615 deals.

The financial services industry emerged as the leader in equity turnover volume and value traded with a significant contribution of 44.13 percent and 42.01 percent respectively. The industry’s trading activity was dominated by 820.815 million shares valued at N16.149 billion being transacted in 16,627 deals.

The oil and gas industry secured the second position in trading activity with 443.711 million shares valued at N5.055 billion being transacted in 5,319 deals. The industry’s trading volume and value contributed 24.00 percent and 10.36 percent respectively to the total equity turnover volume and value.

The conglomerates sector occupied the third position in the trading activity rankings with a trading volume of 183.729 million shares valued at N2.971 billion being traded in 2,510 deals.

Japaul Gold & Ventures Plc, FBN Holdings Plc, and UACN Plc dominated the NGX trading activity for the week, collectively accounting for 39.14 percent of the total equity turnover volume and 26.09 percent of the total equity value traded. The top three equities generated substantial trading volumes and values, with 728.034 million shares worth N10.029 billion being traded in 4,374 deals

The equity market continued to favour CAVERTON as it recorded the most significant share price percentage increase for the second consecutive week, soaring 45.28 percent.

FIDELITY BANK also made notable gains, with its share price rising by 24.20 percent, while FIDSON’s share price ascended by 21.76 percent in the same period.

On the flipside, the equity market witnessed a marked shift in investor sentiment towards NNIGFLOURM (New Nigeria Flour Mills Plc), MECURE, and TANTALIZERS, as these companies experienced declines in their share prices.

NNIGFLOURM, whose share price plummeted by a staggering 18.97 percent, led the bearish charge, followed by MECURE’s 18.18 percent drop, and TANTALIZERS’ 14.08 percent depreciation, marking a significant erosion of market value and investor confidence in these equities.