Emmanuel Ochayi
Investor Activity Increases as NGX Sees a 0.13% Growth
The Nigeria stock Market (NGX) has added to its positive trend in performance after making a weekly gain of 0.13% last week, after making a 0.50% gain the week before.
On turnover of 1.952 billion shares worth ₦35.864 billion through 48,553 transactions, investor activity remained high. Relative to the previous week, when the volume of shares traded was 1.482 billion shares valued at ₦38.875 billion transacted in 44,795 transactions, this was a remarkable improvement in the trading volume.
Join our WhatsApp Channel“The steady rise in market indices shows investor confidence is gradually strengthening,” said Bola Adewale, a market analyst in Lagos. “However, sectoral performances continue to show mixed trends.”
Financial Services Leads Market Activity
The Financial Services Industry topped the activity chart accounting for 53.34% of the total equity turnover volume and 45.19% of the value. Investors traded 1.041 billion shares worth ₦16.207 billion in 21,099 deals.
The Oil and Gas Industry came in second, with 273.407 million shares valued at ₦6.717 billion changing hands in 5,489 deals, while the Services Industry grabbed the third spot seeing a turnover of 141.184 million shares worth ₦779.166 million across 3,072 deals.
According to Tolu Onyekachi, an independent stockbroker, “The dominance of the Financial Services sector reflects its liquidity and ongoing reforms, while the Oil and Gas sector continues to attract attention due to volatile global oil prices.”
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Most Traded Equities of the Week
Japaul Gold and Ventures Plc, FBN Holdings Plc, and Access Holdings Plc emerged as the top three most traded equities. Together, these companies accounted for 461.500 million shares worth ₦6.183 billion in 4,658 deals. They contributed 23.64% of the equity turnover volume and 17.24% of the total value.
“This is a reflection of investor interest in diversified sectors of the market,” noted Onyekachi.
Index Performance and Market Capitalization
The NGX All-Share Index went up a bit by 0.11% ending the week at 97,829.02 points, compared to 97,722.28 points the week before. The market cap also saw a small increase of 0.13% hitting ₦59.292 trillion up from ₦59.215 trillion. The return since the start of the year grew to 30.83%.
But not every index did well. The NGX Main Board, NGX CG, NGX Banking, NGX Pension, NGX AFR Bank Value, NGX MERI Growth, NGX Growth, and NGX Sovereign Bond indices fell, with drops from 0.02% to 13.47%.
Stock Market Sentiment Remains Positive Despite Challenges
Fifty-two equities appreciated in price, higher than the 39 recorded the previous week. Meanwhile, 33 equities depreciated, down from 46 in the prior week. The number of unchanged equities also rose to 68, slightly up from 67.
“Market sentiment remains largely positive, but challenges such as inflation and monetary policy adjustments could influence investor behavior in the coming weeks,” said Adewale.
Future Outlook for Nigeria’s Stock Market
Financial experts predict the NGX will keep going up in the near future, but they’re being careful about it. As new rules and money policies come into play, people putting their cash in will focus on big areas like banks and oil companies.
“The Nigerian stock market is at a critical juncture,” Adewale added. “How well it performs will depend on both local and international economic factors in the coming months.”
