Equities investors on the Nigerian Exchange (NGX) gained approximately N77 billion in the past week as the All-Share Index (ASI) rose by 0.11% week-on-week, closing at 97,829.02 points. This gain was attributed to bargain hunting across various trading sessions.
Market capitalisation climbed by N76.9 billion, ending the week at N59.29 trillion. The increase was achieved despite a notable decline in banking stocks, which experienced significant sell-offs. Cowry Asset Limited highlighted that strong performances in insurance, consumer goods, and industrial sectors helped offset losses in the banking sector.
The market's positive trajectory was further boosted by the addition of 3.12 billion ordinary shares of Haldane McCall to the exchange through a listing by introduction, resulting in a 0.13% week-on-week increase in market capitalisation.
Year-to-date (YTD) returns for the NGX reached 30.83%, trailing the annual inflation rate of 33.88%. Market breadth was positive at a ratio of 1.55x, with 51 stocks advancing against 33 that declined.
Investor Sentiment Mixed Ahead of Key Economic Decisions
Stockbrokers noted that investor sentiment reflected cautious optimism, influenced by the proposed 2025 national budget of N47.90 trillion and anticipation of the Central Bank of Nigeria’s (CBN) Monetary Policy Committee (MPC) meeting, where interest rate direction will be a key focus.
While the number of deals and trading volume fell by 7.74% and 24.08%, respectively, to 44,795 deals and 1.48 billion shares, the value of transactions rose by 8.4% week-on-week to N38.88 billion, indicating selective but higher-value trading.
Sectoral Performance and Weekly Highlights
The Banking Index was the only major sectoral index to decline, dropping 2.57% week-on-week due to continued sell-offs in FBN Holdings, Access Holdings, Sterling Financial, UBA, and Guaranty Trust Holding Company.
Conversely, the Insurance Index led sectoral gains with a 4.54% increase, followed by the Consumer Goods Index (1.93%), Industrial Index (1.75%), and Oil & Gas Index (0.18%).
Top gainers included:
- EUNISELL: 61%
- Tantalizer: 57%
- John Holt: 43%
- Austin Laz: 34%
- Lafarge Africa: 29%
On the losing side, the worst performers were:
- MECURE: -19%
- Multiverse: -18%
- PZ Cussons: -12%
- University Press: -12%
- NNFM: -10%
Outlook for the Coming Week
Cowry Research anticipates a mixed trading direction in the coming week as investors respond to the MPC’s decisions on interest rates, which will likely influence broader investment strategies. The ongoing balance between bargain hunting and profit-taking will remain a key determinant of market performance.
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