Follow Us on Google
The Nigerian equities market rebounded last week, with the NGX All-Share Index (ASI) rising by 0.81 per cent to 241,298.47 points, as investors added about N1.29 trillion to the market capitalisation, which closed at N155.826 trillion.
The recovery came after the market’s recent decline, with renewed buying interest in selected banking, oil and gas and other large-cap stocks supporting the benchmark. The ASI had closed the previous week at 239,351.16 points.
The market’s year-to-date gain consequently stood at 55.06 per cent, while its quarter-to-date return was 5.18 per cent. However, the weekly recovery was not broad-based, as 55 equities recorded price declines compared with only 24 gainers, while 68 stocks remained unchanged. The divergence between the rising benchmark and weak market breadth indicated that buying was concentrated in selected stocks rather than spread across the wider market.
Trading activity also weakened during the week. Investors traded 2.507 billion shares valued at N123.223 billion in 173,561 deals, compared with 6.242 billion shares worth N157.764 billion in 186,496 deals in the preceding week. The decline in turnover occurred in a four-day trading week following the Federal Government’s declaration of Tuesday, August 25, as a public holiday for Eid-el-Maulud.
Despite the lower activity, the Financial Services Industry dominated trading, accounting for 1.977 billion shares valued at N71.563 billion in 79,586 deals. The sector contributed 78.87 per cent of total equity turnover by volume and 58.08 per cent by value.
The Services Industry followed with 148.226 million shares worth N7.252 billion, while the ICT Industry recorded 117.982 million shares valued at N8.635 billion. Trading in Fortis Global Insurance, Jaiz Bank and First Holdco accounted for 793.104 million shares worth N26.898 billion, representing 31.64 per cent of total equity turnover volume and 21.83 per cent of turnover value.
Sector performance showed that oil and gas stocks provided the strongest support for the market. The NGX Oil/Gas Index gained 4.54 per cent to 5,185.35 points, while the Banking Index rose 2.89 per cent to 2,544.92 points. The NGX Commodity Index also increased by 3.31 per cent, while the Premium Index gained 2.29 per cent and the NGX 30 Index rose 1.03 per cent.
However, the Insurance Index fell by 0.63 per cent, Consumer Goods declined by 0.67 per cent, the Main Board Index dropped 0.10 per cent, while the MERI Growth Index and NGX Growth Index fell by 2.21 per cent and 1.56 per cent respectively.
At the individual stock level, University Press emerged as the biggest gainer, appreciating by 18.75 per cent from N4.80 to N5.70 per share. First Holdco followed with an 11.58 per cent gain to N145, while Seplat Energy rose 10 per cent to N12,320.60. Red Star Express gained 9.86 per cent to N16.15, Transcorp Hotels increased by 9.76 per cent to N265.50 and Access Holdings advanced 9.26 per cent to N29.50.
Other News
Cornerstone Insurance, UPDC, Omatek Ventures and Abbey Mortgage Bank also recorded gains of 9.18 per cent, 5.97 per cent, 5.63 per cent and 5.59 per cent respectively.
On the losing side, International Energy Insurance recorded the biggest decline, falling 26.61 per cent from N3.87 to N2.84 per share. Fidson Healthcare declined 17.69 per cent to N77, Caverton Offshore Support Group dropped 15.15 per cent to N4.20, while Zichis Agro Allied Industries and Austin Laz & Company fell 14.71 per cent and 11.97 per cent respectively.
AVA Capital, Veritas Kapital Assurance, Livestock Feeds, TotalEnergies Marketing Nigeria and Ikeja Hotel also recorded double-digit declines. The week’s recovery also came as Nigeria’s return to the FTSE Russell Frontier Market classification drew attention from investors. The confirmation of the country’s reclassification supported renewed interest in selected large- and mid-cap stocks, particularly in banking and oil and gas.
Cowry Asset Management in their weekly review noted that “the positive movement was accompanied by subdued participation, with the market’s gains concentrated in a handful of heavyweight counters.” It said the divergence between the rising ASI and negative breadth showed that the rally was becoming increasingly selective.
The research firm said the Oil and Gas sector gained 4.54 per cent, supported by Seplat’s 10 per cent increase, while Consumer Goods and Banking gained 2.93 per cent and 2.85 per cent respectively. It noted that the performance of heavyweight stocks provided a significant lift to the broader market.
Meanwhile, the market’s monthly performance remained negative despite the weekly recovery, with the ASI’s month-to-date return standing at -1.62 per cent. The weak breadth was also reflected in the daily trading pattern. On the final trading day, 33 stocks appreciated while 19 declined and 79 remained unchanged, but the full-week figures showed that declining stocks still outnumbered gainers by more than two to one.
The concentration of trading in financial stocks further underscored the role of banking counters in the market’s recovery. First Holdco and Access Holdings were among the week’s notable gainers, rising 11.58 per cent and 9.26 per cent respectively.
The oil and gas segment also recorded significant gains, led by Seplat, although the performance within the sector was mixed. While Seplat rose 10 per cent, TotalEnergies Marketing Nigeria fell 10 per cent during the week.
The week’s market performance therefore reflected a rebound in the benchmark rather than a broad-based recovery across listed equities, as investors continued to favour selected stocks while activity and market breadth remained weak.
