Investors harvest N121.07bn in blooming Nigerian stock market 

Onome Amuge

The Nigerian equities market saw a flurry of activity last week, as investors reaped a substantial N121.07 billion in profits on the trading floor of the Nigerian Exchange Group (NGX). This windfall, coupled with the N454.86 billion gain recorded the week before, showcased an overall upward trend in market capitalisation, which rose to N56.78 trillion from N56.46 trillion over the period. 

The NGX’s bullish momentum was evident in the three out of five trading days that recorded gains, further cementing its position as a prime destination for profitable investments.

The All-Share Index (ASI), a key performance indicator for the Nigerian equity market, also reflected the upbeat momentum witnessed last week. The ASI edged up by +0.21 percent, scaling the height of 98,458.68 points from the previous week’s closing position of 98,247.99 points.

The Nigerian equity market kicked off the week on a high note with investors raking in N79.65 billion in profits by the end of the first trading session on Monday, September 23, 2024. 

The trend of profitability spilled into Tuesday, September 24, 2024, with investors pocketing a further N104.57 billion by day’s end. The profit-making streak was sustained on Wednesday, September 25, 2024, with the bourse recording a gain of N240.67 billion.

The bulls’ winning streak came to a sudden halt on Thursday, September 26, 2024, with the bears making their presence felt in the Nigerian equity market. The market suffered a loss of N266.55 billion by the end of the trading session, as investors were left nursing their wounds following the bearish onslaught.

The week came to a close on Friday, September 27, 2024, with the equity market posting a trading deficit of N37.28 billion.

Despite the volatile market conditions last week, investor activity remained robust, with 3.318 billion shares worth N45.911 billion changing hands in 49,243 deals on the floor of the NGX. This marked an uptick in trading volume and value compared to the previous week’s figures, which stood at 1.860 billion shares valued at N38.445 billion in 40,228 deals.

The Financial Services industry emerged as the foremost driver of trading activity on the NGX, with 1.430 billion shares valued at N23.659 billion traded in 22,745 deals. The industry’s contribution to the overall equity turnover volume and value stood at 43.09 percent and 51.53 percent, respectively, affirming the importance of the financial services sector in the Nigerian economy and capital markets.

The Oil and Gas industry came in second, with 703.389 million shares valued at N7.323 billion exchanging hands in 6,207 deals.

In third place, the Healthcare industry displayed a strong performance, with 411.489 million shares worth N2.896 billion changing hands in 827 deals.

Japaul Gold & Ventures Plc, Mecure Industries Plc, and Fidelity Bank Plc dominated trading activity last week, accounting for a combined volume of 1.363 billion shares valued at N9.472 billion in 4,050 deals. The power trio’s dominance contributed 41.06 percent and 20.63 percent to the total equity turnover volume and value, respectively.

Ellah Lakes Plc was the week’s standout performer, as its share price skyrocketed 59.74 percent, outpacing all other contenders and sending its stock soaring to new heights.

Hot on its heels was Regency Assurance Plc, whose share price grew 53.33 percent, proving that the insurance giant is well on its way to bigger and better things.

Flour Mills Nig. Plc also witnessed a significant rise in its share price which grew 22.89 percent, further solidifying its position as a stalwart of the Nigerian market.

While some companies basked in the glow of the Nigerian market’s bull run last week, others found themselves on the receiving end of a rough ride.

Leading the pack of decliners was Caverton Offshore Support Group Plc, whose share price took a nosedive, shedding 27.37 percent in value.

Not far behind was Multiverse Mining and Exploration Plc, which also suffered a significant loss, shedding a painful 19.64 percent in share price.

Okomu Oil Palm Plc, a leading player in the Nigerian palm oil industry, didn’t escape the market’s bearish claws as the company suffered a sharp decline in share price, shedding 13.10 percent in value.