Over N14bn Invested In Key Nigerian Stocks, Fueling Exchange Surge

In a whirlwind week of trading, the Nigerian Exchange Limited witnessed a surge, with investors staking over N14 billion on shares, notably Japaul Gold and Venture Plc, FBN Holdings, and United Bank for Africa Plc.

The trio spearheaded a trading volume accounting for over a billion shares, marking 40.80 percent in the equity turnover volume. This flurry of activity has been attributed to a reshuffling by investors, driven by the anticipation of macroeconomic reports and a strategic eye on upcoming market movements.

According to market insights, this frenetic buying interest is primarily in anticipation of economic data, including the much-awaited October Inflation figure, Q3 GDP data, and the final Monetary Policy Committee (MPC) meeting for the year. Moreover, investors are seen positioning themselves, increasing stakes in FBN Holdings in anticipation of its upcoming N139 billion rights issue.

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The market’s response to these activities has been notable, witnessing a 0.93 percent rise in the NGX All-Share Index and a 0.95 percent increase in market capitalization, closing the week at 70,849.38 and N38.925tn respectively.

This positive momentum was further propelled by MeCure Industries‘ entrance onto the exchange, contributing significantly to the market’s upswing by adding N11.8bn in market capitalization.

The week also saw a gain for investors, totaling N369bn, reflecting a year-to-date return for the market that has climbed to 38.24 percent. Notably, the Financial Services Industry dominated the activity chart, indicating movement and contributing to the overall equity turnover volume and value.

Despite the overall surge, the market showed mixed performances among individual stocks. Noteworthy gainers included JapaulGold, RT Briscoe, Glaxo SmithKline Consumer Nigeria Plc, PZ Cussons Nigeria Plc, and DEAP Capital Management and Trust, each showing considerable gains by the week’s close.

However, some stocks experienced declines, notably Caverton, The Initiates, Northern Nigeria Flour Mills, Multiverse Mining, and Cadbury’s, marking a slight downturn in their share prices.

With investors eyeing pivotal economic reports and positioning themselves in the market, the Nigerian Stock Exchange is witnessing dynamic shifts, setting the stage for potential market movements in the coming weeks.