Nigeria’s Stock Market Rises By 1.80% In One Week

The Nigerian Exchange Limited (NGX) All-Share Index (ASI) and Stock Market Capitalisation saw notable gains, rising by 1.80 per cent. By the end of trading on Friday, January 10, the ASI stood at 105,451.06 points, while the Market Capitalisation reached N64.303 trillion.

Most other indices also finished the week higher, with a few exceptions. Indices like NGX Insurance, NGX AFR Bank Value, NGX AFR Div Yield, NGX MERI Value, NGX Consumer Goods, NGX Oil and Gas, and NGX Industrial Goods saw decreases ranging from 0.08 percent to 6.91 per cent. The NGX ASeM index remained unchanged.

Stock Market Activity Breakdown

During the week, a total of 4.698 billion shares valued at N85.043 billion were traded in 72,562 deals. This was a significant increase from the previous week’s turnover of 2.618 billion shares worth N69.742 billion across 47,953 deals.

Mr. John Okeke, an analyst, mentioned, “The volume of trade this week shows a healthy level of investor engagement. It indicates growing confidence in the market.”

Key Contributors to Market Turnover

The Financial Services Industry led the trading activity, accounting for 3.470 billion shares valued at N40.791 billion in 34,364 deals. This represented 73.86 percent of the total equity turnover volume and 47.97 percent of the total value. Following this, the Services Industry recorded 407.032 million shares worth N2.226 billion in 4,996 deals. The ICT Industry contributed with 237.680 million shares worth N3.628 billion in 5,280 deals.

A trader noted, “The Financial Services sector continues to dominate trading activities, reflecting its critical role in the economy.”

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Top Performing Stocks in the Stock Market

The top three equities by volume were Wema Bank Plc, FBN Holdings Plc, and Universal Insurance Plc. These stocks together accounted for 1.679 billion shares worth N20.838 billion in 4,922 deals. This constituted 35.74 per cent of the total equity turnover volume and 24.50 per cent of the total value.

According to Mr. Okeke, “Wema Bank, FBN Holdings, and Universal Insurance have been consistent performers, drawing substantial investor interest.”

Market Weekly Summary

In summary, 51 equities appreciated in price this week, a decrease from 82 in the previous week. Conversely, 39 equities saw price declines, compared to 18 in the prior week. Additionally, 62 equities remained unchanged, up from 52 in the previous week.

Mrs. Adeola Akin, a market observer, commented, “The fluctuation in stock prices is expected as investors respond to market dynamics and economic indicators.”

Stock Market Outlook

Looking ahead, analysts expect the stock market to continue experiencing mixed reactions as investors digest economic policies and global market trends. The positive performance of the Financial Services sector is likely to sustain its influence on overall market activities.

Mr. Okeke concluded, “The stock market’s performance this week is encouraging, but investors should stay cautious and diversify their portfolios to manage risks effectively.”