Nigerian investors in the equity market witnessed a significant boost to their portfolios as their wealth appreciated by a staggering N1.08tn over the course of the last week. This surge in wealth can be attributed to bullish trading activities in select stocks, with investors eagerly positioning themselves ahead of upcoming half-year earnings reports.
The Nigerian Exchange Group (NGX) All-Share Index, which serves as a barometer for the overall market performance, saw a remarkable growth of three percent or 1,968.28 basis points during the week, concluding at an impressive 67,527.19 points. This surge was matched by an increase in the market capitalization, which jumped by N1.078tn to reach N36.958tn by the close of the week.
The positive momentum extended across the market, with all other indices finishing higher, except for the NGX Growth Index, which experienced a minor depreciation of 1.85 percent, while the NGX ASeM Index remained relatively stable.
In terms of trading volume, investors displayed heightened activity during this period, exchanging 2.87 billion shares valued at N37.05bn across 33,968 deals. This represents a notable increase compared to the previous week when 1.812 billion shares worth N29.299bn changed hands in 31,163 deals.
The financial services industry led the activity chart by volume, with 1.424 billion shares valued at N13.398bn traded in 18,216 deals. This industry contributed significantly, accounting for 49.70 percent of the total equity turnover volume and 36.16 percent of the value, reflecting a 49 percent share of the quantity traded.
The conglomerate industry followed closely with 652.296 million shares worth N4.434bn traded in 4,931 deals. Meanwhile, the consumer goods industry recorded a turnover of 264.359 million shares valued at N12.036bn, exchanged in 10,821 deals, contributing nine percent to the total volume of equities traded.
During the week under review, 55 equities recorded gains, a notable increase from the 32 equities that appreciated in the previous week. Conversely, 28 equities depreciated in price, a decrease from the 46 in the previous week, while 72 equities remained unchanged, down from the 77 recorded in the prior week.
Leading the gainers’ chart was Omatek Ventures Plc, which saw a remarkable gain of 53.33 percent, closing at N0.46. Dangote Sugar and NASCON, which had agreed to merge with Dangote Rice Limited, also posted impressive gains of 27.37 percent and 24.25 percent, respectively, closing the week at N60.50 and N55.60.
Glaxo SmithKline Consumer Nigeria Plc, despite announcing the closure of its operations in Nigeria, saw a gain of 22.64 percent, closing at N13. Real estate group UPDC also performed well, with a gain of 22.55 percent, closing at N1.25.
On the flip side, Computer Warehouse Group experienced a significant loss of 19.80 percent, closing at N4.01, and John Holt saw a decline of 14.38 percent, closing at N1.31.
Analysts at Cowry Asset Management Limited have offered insights into the market’s future, stating that they “anticipate that the market sentiment will remain mixed due to ongoing portfolio realignments.” This sentiment is expected to be influenced by a combination of bargain hunting and uncertainty surrounding future money market yields, particularly in light of the impending earnings reports from first-tier banks and the continuation of sectoral rotation. As investors await further developments, the Nigerian equity market continues to be a dynamic and lucrative arena for wealth creation.