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By Chukwuma Umeorah
Nigeria’s equities market added about N1.1 trillion in investor value last week, driven largely by renewed demand for industrial and mid-cap stocks despite profit-taking in some heavyweight counters.
The benchmark All-Share Index of the Nigerian Exchange Limited advanced by 1.03 per cent week-on-week (WoW) to close at 244,775.83 points from 242,277.81 points recorded the previous week, while market capitalisation rose to N157.09 trillion. The market’s year-to-date return also strengthened to 57.3 per cent.
The rally was supported mainly by strong gains in industrial and insurance counters, with the NGX Industrial Goods Index emerging as the best-performing sectoral index after rising 5.11 per cent during the week. The insurance index gained 4.01 per cent, while the banking index rose 1.89 per cent. In contrast, the oil and gas index declined 3.27 per cent following sell pressure in selected energy stocks. Market activity also strengthened significantly as investors traded 7.075 billion shares valued at N324.35 billion in 474,436 deals, compared with 4.842 billion shares worth N287.76 billion exchanged in 332,453 deals in the previous week.
The financial services sector remained the most active segment of the market, accounting for 4.26 billion shares valued at N131.48 billion, representing 60.22 per cent of total traded volume and 40.54 per cent of total traded value. The ICT sector followed with 769.24 million shares worth N45.32 billion, while the investment sector recorded 544.81 million shares valued at N5.78 billion. Trading in Access Holdings Plc, VFD Group Plc and CWG Plc accounted for 1.589 billion shares valued at N30.10 billion, contributing 22.46 per cent and 9.28 per cent to total equity turnover volume and value respectively.
Investor demand during the week shifted strongly toward industrial and consumer-related mid-cap stocks. CAP Plc gained 60.95 per cent to close at N233.70 per share, followed by Zichis Agro Allied Industries Plc which appreciated by 53.17 per cent to N33.36. FTN Cocoa Processors Plc rose by 50.91 per cent to close at N8.30, while R.T. Briscoe Plc advanced 40.98 per cent to N15.00 per share. Dangote Sugar Refinery Plc also recorded a 33.43 per cent gain to close at N93.00.
Analysts said the performance reflected sustained appetite for growth and industrial counters amid continued portfolio rotation within the market.
In their weekly review note, Cowry Asset Management Limited stated that the market maintained “a strong bullish outlook” supported by “sustained investor confidence, rising trading activity, and broad sectoral gains.” The firm, however, added that “short-term volatility may persist due to profit-taking in recently rallying large-cap stocks and ongoing sector rotation.”
Despite the overall positive close, some large-cap equities came under pressure. On the losers’ chart, Nigerian Aviation Handling Company Plc declined by 20.95 per cent to close at N203.95, while Guinness Nigeria Plc shed 18.99 per cent to N402.60. Access Holdings Plc lost 12.59 per cent to close at N23.60, while MTN Nigeria Communications Plc dropped 12.45 per cent to N801.10 per share.
Overall market breadth improved, with 69 equities posting gains compared with 36 decliners, while 41 stocks closed unchanged. The figures were stronger than the previous week, when 52 equities appreciated and 53 recorded losses.
Analysts said the direction of the equities market in the coming sessions would likely remain influenced by sector rotation, corporate earnings expectations and broader macroeconomic conditions, particularly interest rates, inflation and exchange-rate stability.
