Banking, consumer stocks drive 1.76% weekly gain in equities

By Chukwuma Umeorah

Nigerian equities closed the week on a positive note as strong buying interest in banking and consumer goods stocks lifted the market by 1.76 per cent, extending the year-end rally on the Nigerian Exchange Limited (NGX).

The NGX All-Share Index rose to 152,057.38 points from 149,433.26 points, while market capitalisation increased by N1.67 trillion to N96.94 trillion, reflecting renewed risk appetite among investors. Year-to-date return strengthened to 47.73 per cent.

Gains were largely driven by the banking and consumer goods sectors, which benefited from sustained accumulation in fundamentally strong names ahead of the Christmas holidays. The NGX Banking Index advanced by 2.75 per cent, while the NGX Consumer Goods Index climbed by 4.51 per cent for the week.

Trading activity also improved significantly, underscoring stronger participation in the equities market. Total turnover stood at 9.85 billion shares valued at N305.84 billion in 126,584 deals, compared with 4.37 billion shares worth N97.78 billion that was traded in the previous week. The Financial Services sector dominated activity, accounting for approximately 84 per cent of total volume and about 76 per cent of total value traded.

Market breadth closed positive, with 55 stocks appreciating in price against 36 decliners, while 55 equities remained unchanged, indicating broad-based buying interest across sectors.

On the gainers’ table, Aluminium Extrusion Industries Plc led with a 59.35 per cent appreciation, closing at N12.35 per share, followed by Mecure Industries Plc, which gained 44.93 per cent to close at N55.00 per share. First Holdco Plc advanced by 42.93 per cent, ending the week at N44.95 per share, while Guinness Nigeria Plc rose by 33.01 per cent to close at N289.70 per share. NPF Microfinance Bank Plc added 20.65 per cent to close at N3.74 per share.

Other notable gainers included Champion Breweries Plc, which gained 19.79 per cent to close at N16.95 per share, Sunu Assurances Nigeria Plc, up by 17.96 per cent to N4.73 per share, and Tantalizers Plc, which appreciated by 15.45 per cent to close at N2.69 per share.

On the negative side, LivingTrust Mortgage Bank Plc topped the losers’ chart, shedding 11.38 per cent to close at N3.35 per share. Japual Gold and Ventures Plc declined by 10.53 per cent to N2.38 per share, while International Energy Insurance Plc fell by 9.92 per cent to close at N2.27 per share. FTN Cocoa Processors Plc lost 9.80 per cent to close at N4.42 per share, and Stanbic IBTC Holdings Plc declined by 9.33 per cent to N95.20 per share.

Sectoral performance was broadly positive, with five of the six major indices closing in the green. In addition to banking and consumer goods, the industrial goods sector rose by 0.72 per cent, supported by buying interest in cement stocks. The insurance index gained 3.07 per cent, while the commodity index edged up by 0.34 per cent. The oil and gas sector was the only laggard, declining marginally by 0.17 per cent amid mild profit-taking.

Analysts at Cowry attribute the rally to “year-end positioning, window-dressing activities by fund managers and sustained interest in stocks with strong earnings outlooks.” While some profit-taking is expected in the coming sessions, market watchers note that “improved liquidity and positive sentiment could continue to support equities in the near term, especially in fundamentally sound banking and consumer-facing stocks.”