Banking stocks lift equities market by 1.06%, investors gain N608bn

The Nigerian equities market recorded a positive performance last week, buoyed by significant gains in banking stocks, as the NGX All-Share Index (ASI) appreciated by 1.06 percent to close at 97,456.62 points. This led to a market capitalisation increase of N608 billion, pushing the total value of listed stocks to N56.002 trillion.

The NGX weekly report revealed that the banking sector was the driving force behind the rally, with the NGX Banking Index rising by 5.12 percent. Major contributors included top banks such as Zenith Bank Plc, Jaiz Bank Plc, and Japaul Gold & Ventures Plc, which collectively traded 947.855 million shares worth N11.084 billion, accounting for 36.68 percent of the total equity turnover volume and 21.65 percent of the value.

Investors also demonstrated interest in the oil & gas sector, which increased by 2 percent week-on-week (WoW). The NGX Insurance Index also rose by 1.59 percent, while the NGX Industrial Index and NGX Consumer Goods Index increased by 0.17 percent and 1.47 percent respectively. However, the NGX Growth Index dipped slightly by 0.03 percent, and the NGX ASeM Index remained flat.

Market analysts had earlier predicted a positive performance for the week under review as investors digested and reacted to the latest earnings announcements of firms in the banking sector. In total, investors exchanged 2.584 billion shares valued at N51.205 billion across 50,615 deals this week, a slight increase from the 2.141 billion shares worth N51.217 billion traded in the previous week. The Financial Services Industry led activity with 1.707 billion shares valued at N26.989 billion, contributing 66.05 percent of the total equity volume.

In terms of market breadth, 52 equities appreciated in price compared to 36 in the previous week, while 31 equities depreciated, lower than the 46 recorded in the previous period. Notable gainers included Learn Africa Plc, while Sovereign Trust Insurance Plc was among the decliners.

The bond market also saw increased activity, with 197,343 units worth N189.520 million traded this week, significantly higher than the 21,002 units valued at N19.904 million traded last week. The Exchange Traded Products (ETPs) market witnessed trades of 43,535 units valued at N13.476 million, up from the previous week’s 23,881 units.

Looking into the new week, analysts at Cowry Research predict that positive sentiment will continue to rule the local bourse “on the back of portfolio rebalancing and position-taking in value-giving and fundamentally sound stocks, given the relative strength of the market index trading above the T-line.”