Onome Amuge
The Nigerian Exchange (NGX) extended its positive momentum on Thursday, buoyed by significant gains in select blue-chip stocks, even as market sentiment remained cautious. The All-Share Index (ASI) rose 0.10 per cent to close at 145,476.15 points, lifting market capitalisation by N97 billion to N92.73 trillion. Investors collectively gained N349 billion, marking a continuation of the market’s recovery after earlier weeks of volatility.
Despite the overall positive close, the market breadth signaled caution. A total of 28 stocks declined, surpassing the 23 gainers, resulting in a breadth ratio of 0.8x. Ninety-six stocks remained unchanged, reflecting a market where optimism was concentrated among a few strong performers.
UAC Nigeria was the standout performer, climbing 10 per cent to close at N88.00 per share, up from N80.00 the previous day. Investors responded positively to renewed confidence in the industrial goods sector and the company’s solid quarterly performance. Morison Industries followed closely, posting a 9.94 per cent gain to close at N3.54 per share, while Ecobank Transnational Incorporated (ETI) advanced 8.53 per cent to end trading at N36.90, buoyed by a combination of strong regional performance and improving investor sentiment in the banking sector.
Other notable gainers included Wapic Insurance and Mansard Insurance, both contributing to a broader sectoral upswing in insurance equities. Collectively, the insurance sector led the pack with a 1.56 per cent increase, followed by the banking sector’s 0.91 per cent gain. Industrial goods rose 0.48 per cent, consumer goods added 0.28 per cent, and the oil & gas sector edged up 0.08 per cent. The commodities sector, by contrast, remained unchanged.
While select stocks increased, others pulled back sharply, tempering overall enthusiasm. Ellah Lakes, Eunisell, and Transcorp Hotel led the losers, shedding 10 per cent, 10 per cent, and 9.95 per cent respectively. Ellah Lakes closed at N13.14 per share, down from N14.60, Eunisell retreated to N72.90 from N81.00, while Transcorp Hotel slid to N157.50 from N174.90. These declines were largely attributed to profit-taking and sector-specific pressures, underscoring the uneven nature of market gains.
Omatek and Guinea Insurance were also among the notable decliners, adding to the mixed sentiment that pervaded the trading floor. Analysts noted that the divergence between top gainers and decliners is typical in a market where investors are selectively reallocating capital toward high-performing stocks with robust fundamentals.
Trading activity on Thursday displayed mixed signals. Share volume declined 14.15 per cent to 1.93 billion units, and transaction value fell 8.47 per cent to N19.19 billion, indicating more cautious participation from retail investors. However, the number of deals rose 8.63 per cent to 23,369 transactions.
In terms of volume, Fidelity Bank led activity with 31 million shares traded across 371 deals. Guaranty Trust Holding Company followed with 28 million shares in 1,064 deals, while Zenith Bank traded 27 million shares in 1,097 deals. The value index mirrored some of these trends: Guaranty Trust led with equities worth N2.4 billion exchanged, followed by Aradel Holding at N2.0 billion and Zenith Bank at N1.6 billion.
Sectoral performance reinforced these trends, with banking and insurance continuing to dominate investor attention. Analysts observed that strong corporate earnings reports, coupled with expectations of regulatory clarity in financial services, are driving investor interest toward these segments.
Thursday’s trading also reflects macroeconomic optimism. Despite concerns over inflation and currency fluctuations, investors appear willing to allocate capital to sectors with stable earnings and growth prospects. Insurance and banking stocks, in particular, are benefiting from increased retail and institutional participation, signaling a cautious but positive outlook for the remainder of the quarter.
The NGX’s positive close, driven by top gainers, also indicates that market participants are increasingly focused on fundamentals and sectoral performance rather than broad speculation. Analysts highlight the continued relevance of industrial goods, insurance, and banking sectors as potential drivers of market growth in the coming weeks.
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