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By Chukwuma Umeorah
The Nigerian equities market ended the month of May with a 1 per cent gain. The NGX All-Share Index (ASI) started the month at 98,152.91 points and closed at 99,300.38 points on the last trading day.
Following consecutive losses in the preceding weeks, the market made a recovery from gains recorded in the final trading week. Market capitalization also saw an uplift, beginning May at N55.51 trillion and closing at N56.172 trillion. This means that investors’ wealth collectively added N662.2 billion within this period.
Similarly, all other indices finished higher except for NGX Industrial Goods and NGX Growth, which depreciated by 0.13 per cent and 0.29 per cent, respectively, while the NGX ASeM and NGX Sovereign Bond indices closed flat. Despite the overall quarterly decline of 5.03 per cent, the ASI remains robust with a year-to-date (ytd) gain of 32.8 per cent. The market activity for May included a turnover volume of 9.955 billion shares traded across 197,056 deals, with a value of N198 billion.
The month’s gains were led by significant performances in the banking and consumer goods sectors. The NGX Banking Index rose by 2.97 per cent MTD, closing at 797.37 points, driven by strong quarterly results from major banks. Guaranty Trust Holding Company (GTCO), for instance, reported the best quarterly profit in banking history, leading to a 22.3 per cent monthly gain. Fidelity Bank also saw a significant rise, gaining 13.33 per cent.
Consumer goods stocks also contributed to the positive trend, with the NGX Consumer Goods Index posting a 1.19 per cent MTD gain. Dangote Sugar saw a notable increase of 20.82 per cent and International Breweries rose by 27.40 per cent.
In the oil and gas sector, the NGX Oil and Gas Index recorded a 2.06 per cent gain, supported by Seplat Energy’s 3.6 per cent monthly increase. Overall market turnover for May included 9.955 billion shares traded in 197,056 deals, valued at N198 billion.
The final week of May was particularly strong, sectoral performance was largely bullish with four out of five sectors recording positive returns during the week. The Oil & Gas grew 9.1 per cent WoW, Banking added 8.7 per cent WoW while Insurance and Consumer Goods added 3.9 per cent and 2.0 per cent WoW on account of buying interests in Seplat, FBNH, Mansard and Dansugar. Conversely, the Industrial Goods index depreciated by 13 basis points WoW driven by sell pressures in WAPCO.
During the week, 2.189 billion shares worth N31.303 billion were traded across 39,362 deals, an increase from the previous week’s 1.986 billion shares valued at N40.715 billion in 38,487 deals. The financial services industry dominated, accounting for 87.41 per cent of the total equity turnover volume and 76.42 per cent of the value.
Trading in the top three equities namely Abbey Mortgage Bank Plc, Access Holdings Plc and Zenith Bank Plc which accounted for 1.129 billion shares worth N14.914 billion in 6,494 deals, contributing 51.57 per cent and 47.64 per cent to the total equity turnover volume and value respectively.
Analysts at Cowry Research predict that the positive sentiments in energy and financial stocks which fueled the bullish trajectory may continue in the new trading month. “Looking ahead, the current bullish trend is expected to persist, driven by profit-taking and portfolio rebalancing as the new trading month approaches. Market pullbacks are anticipated to enhance the index’s upward potential, supported by the ongoing dividend earnings season.”
