The Nigerian equities market rebounded over the past week, achieving a 0.87% week-on-week (WoW) growth, resulting in investor gains of approximately N481 billion. The All-Share Index (ASI) climbed to 98,592.12 points, up from 97,745.73 points the previous week, while the market capitalization increased to N55.978 trillion, signaling a rise in investor confidence.
However, trading activity showed mixed outcomes. The total turnover was 2.679 billion shares valued at N49.017 billion, executed in 47,451 deals. This was a slight decline in both volume and value compared to the previous week’s 3.393 billion shares worth N52.304 billion across 44,814 deals. Despite the overall market growth, the financial services sector remained dominant, accounting for 74.00% of the total equity turnover volume and 65.25% of the total value, with 1.982 billion shares valued at N31.985 billion traded in 23,467 deals.
The NGX Banking Index experienced a significant rise of 5.14% during the week, driven by increased investor interest as banks continue their recapitalization efforts, attracting investors with appealing offers. Notably, GTCO, Fidelity, Access Bank, FCMB, and Zenith Bank have all initiated efforts on the Exchange to raise additional capital through rights issues and public offers.
The oil and gas sector followed, with 229.680 million shares worth N7.441 billion, while the ICT sector ranked third, with 113.887 million shares valued at N3.059 billion. The top three equities by volume—Access Holdings Plc, Veritas Kapital Assurance Plc, and United Bank for Africa Plc—contributed 28.22% to the total equity turnover volume and 21.88% to the total value.
Sectoral performance was mostly positive, with the majority of indices closing higher. The NGX Banking Index led the gains with a 5.14% increase, followed by the NGX Consumer Goods Index, which rose by 2.35%. Conversely, the NGX Industrial Goods Index was the largest decliner, dropping by 3.67%.
Market breadth was also positive, with 46 equities appreciating in price compared to 40 in the prior week. Notable gainers included Oando Plc, which surged by 60.47%, and R.T. Briscoe Plc, which climbed 51.19%. On the other hand, Champion Breweries Plc and BUA Cement Plc were the top decliners, falling by 15.03% and 9.99%, respectively.
In the exchange-traded products (ETP) market, 20,375 units worth N5.912 million were traded in 148 deals, representing an increase in value from the previous week’s 21,051 units worth N2.202 million. The bond market also saw a surge in activity, with 184,955 units valued at N187.759 million traded in 40 deals, compared to 63,807 units worth N61.528 million in 37 deals the previous week.
Looking ahead, analysts at Cowry Research anticipate that the current upward trend in the market will persist, driven by improving market fundamentals and sustained buying interest. The ongoing dividend season is expected to maintain positive sentiment among market participants, with investors likely to continue repositioning for value as they await half-year earnings reports from major banks in the coming weeks.
