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By Chukwuma Umeorah
The Nigerian equities market sustained its upward trajectory last week, adding N1.36 trillion in value as the benchmark All-Share Index (ASI) rose by 1.03 per cent to close at 203,770.42 points, reflecting continued investor interest in select large-cap stocks.
Market capitalisation increased correspondingly to N131.17 trillion, while the year-to-date (Ytd) return advanced to 30.95 per cent. However, market breadth remained negative at 0.46x, with 25 stocks recording gains against 54 decliners, indicating that the broader market did not fully participate in the rally. This suggests that the positive performance was largely driven by a narrow set of fundamentally strong and highly capitalised equities.
Analysts at Cowry Asset Management Limited noted that “the Nigerian equities market ended the week on a positive note once again, as gains in a few key stocks lifted overall performance,” adding that the trend reflects a market increasingly tilted toward selective positioning rather than broad-based buying.
Their weekly review note stated that “going forward, the Nigerian equities market is expected to maintain its positive momentum in the coming week, supported by sustained buying interest in fundamentally strong and highly liquid stocks.” It, however, cautioned that “the negative market breadth suggests underlying fragility, as profit-taking and sell-offs in a broader range of stocks could temper gains.”
The firm added that investors are likely to remain selective, focusing on value opportunities and earnings-driven plays while monitoring macroeconomic conditions and liquidity trends for clearer direction.
Trading activity improved significantly during the week, reversing the previous downturn. Total volume traded rose by 17.67 per cent to 3.36 billion shares, while the value of transactions surged by 33.73 per cent to N152.13 billion across 230,368 deals. This points to renewed participation by investors, particularly in liquid counters.
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Data from the Exchange also showed that the Financial Services sector dominated market activity, accounting for 68.54 per cent of total volume and 59.54 per cent of total value traded. The top three equities by volume namely Access Holdings Plc, Wema Bank Plc, and Guaranty Trust Holding Company Plc jointly contributed over 33 per cent of total turnover, highlighting the concentration of trading in a few heavily capitalised stocks.
Sectoral performance was largely positive, with the banking index leading the rally with a 5.10 per cent gain, driven by strong buying interest in tier-1 lenders. Consumer goods followed with a 3.73 per cent increase, while oil and gas and industrial goods indices recorded gains of 2.67 per cent and 0.80 per cent respectively.
In contrast, the insurance sector declined by 3.64 per cent, emerging as the only laggard during the week, amid sustained sell-offs in selected counters.
On the individual stock performances, Trans-Nationwide Express Plc led with a 32.7 per cent increase, closing at N3.77 per share, followed by Nigerian Exchange Group, which gained 13.9 per cent to close at N188.00 per share. Guaranty Trust Holding Company also advanced by 10.7 per cent to N135.00 per share, while NASCON Allied Industries rose by 9.5 per cent to N161.00 per share. Guinness Nigeria appreciated by 9.4 per cent to close at N462.90 per share.
On the losers’ chart, DAAR Communications Plc led with a 21.5 per cent decline, closing at N1.50 per share, followed by RT Briscoe Plc, which shed 20.0 per cent to N8.40 per share. Deap Capital Management & Trust Plc also fell by 16.8 per cent to N5.00 per share, while Ellah Lakes Plc dropped by 16.7 per cent to N10.00 per share. Japaul Gold & Ventures Plc declined by 16.3 per cent to close at N2.93 per share.
During the week under review, additional shares of Access Holdings Plc amounting to over 1.05 billion units were listed on the Exchange following its recent private placement, increasing the company’s total issued shares and potentially improving liquidity in the counter.
