Equities market sustains bullish run as investors gain N883bn on NGX

Onome Amuge

The Nigerian equities market continued its positive trajectory as investor sentiment strengthened, leading to a net gain of N883.7 billion on the NGX trading floor. The bullish returns  in the value of traded securities comes on the heels of a successful trading week where investors gained N1 trillion in market capitalisation.

The market ended the week with a surge in market capitalisation, reaching N65.592 trillion, a significant increase from the N64.709 trillion recorded in the preceding week.

Reflecting this momentum, the All-Share Index (ASI) climbed 1.38 percent, ending the week at 105,933.03 points, an improvement from its previous closing of 104,496.12 points.

Meanwhile, investors traded a total of 3.051 billion shares worth N98.350 billion in 72,535 deals, outpacing the previous week’s turnover of 3.245 billion shares valued at N69.198 billion in 77,270 deals.

The NGX experienced a shift in price movements, with 58 equities recording gains compared to 52 in the previous week. This trend was further maintained by a decline in price depreciation among equities, with 34 stocks dropping in price compared to 44 in the previous week.

The number of equities that remained unchanged also increased, with 58 maintaining their prices, up from 54 in the preceding week.

The Financial Services Industry dominated the week’s equity market activity, trading 2.260 billion shares valued at N52.190 billion in 33,724 deals. The sector also accounted for 74.08 percent of the total equity turnover volume and 53.07 percent of the value.

Following closely behind was the Consumer Goods Industry, with a turnover of 141.684 million shares worth N4.018 billion in 7,218 deals.

The Industrial Goods Industry emerged third place in the week’s market activities, trading 104.862 million shares valued at N3.300 billion in 3,995 deals.

The NGX saw a heavy concentration of trading activity in the top three equities, measured by volume as the trio of Access Holdings Plc, FBN Holdings Plc, and Zenith Bank Plc traded 1.176 billion shares valued at N38.469 billion in 9,506 deals, accounting for 38.56 percent of the total equity turnover volume and 39.11 percent of the value.

UPDC Plc emerged as the week’s biggest gainer, recording a 38.50 percent increase in its share price. Eterna Plc followed closely with a 32.79 percent rise, while International Energy Insurance Plc came in third with a 29.53 percent appreciation.

In contrast, Sunu Assurances Nigeria Plc suffered the worst loss, shedding 12.87 percent of its share price, closely followed by University Press Plc with a 10.00 percent decline. Multiverse Mining And Exploration Plc also recorded a significant loss, with its share price tumbling 9.95 percent.

The Nigerian equities market displayed a remarkable performance for the week, with each of the five trading days ending in gains for investors.

This winning streak commenced on Monday, February 3, 2025, as investors accumulated N83 billion in profits by the end of the first day’s trading session.

The NGX extended its rally into Tuesday, February 4, 2025, with investors netting N98 billion in gains for the day.

The bullish sentiment continued to surge on Wednesday, February 5, 2025, as investors accumulated N332.25 billion in profits

The NGX maintained its upward trajectory on Thursday, February 6, 2025, as investors garnered an additional N68.15 billion in gains by the end of the trading day.

The bullish momentum reached its apex on the final trading day of the week, Friday, February 7, 2025, as investors reaped N305.07 billion in profits, the second-highest single-day gain of the week.

According to market analysts at Cowry Research, the bullish momentum observed in the Nigerian stock market is expected to persist in the coming weeks, fueled by the anticipated release of impressive Q4 earnings reports from publicly traded companies.

“These reports are expected to provide insights into potential dividend payouts, based on corporate earnings performance and dividend policies,” they stated.

In addition, the analysts noted that macroeconomic data and upcoming economic events are expected to shape market sentiment in the coming week. This is as investors keep an eye on corporate disclosures and broader economic indicators to make informed decisions.