The Nigerian Exchange Limited (NGX) extended its bullish momentum during the week as investors traded 3.65 billion shares worth N220.57bn, pushing the market capitalisation to N156.45tn after the benchmark All-Share Index (ASI) advanced by 6.35 per cent.
Weekly trading statistics released by the Exchange showed that investors exchanged 3.648 billion shares valued at N220.568bn in 251,861 deals, compared with 3.821 billion shares worth N154.393bn traded in 258,567 deals in the previous week.
Although the volume of shares traded declined by 4.53 per cent, the total value of transactions surged by approximately 42.9 per cent, indicating increased demand for higher-priced equities and sustained institutional participation in the market.
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The strong buying interest lifted the NGX All-Share Index to 243,798.76 basis points, while investors gained significantly as the overall market capitalisation climbed to N156.445tn, representing a weekly appreciation of 6.35 per cent.
The broad-based rally was reflected across most market indices.
According to the Exchange, all sectoral and thematic indices closed the week in positive territory except the NGX Growth Index, which declined by 7.43 per cent, and the NGX Sovereign Bond Index, which slipped marginally by 0.02 per cent.
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The Financial Services sector maintained its dominance of trading activities, accounting for nearly four-fifths of the total shares exchanged during the week.
The sector recorded a turnover of 2.899 billion shares valued at N147.360bn in 106,603 deals, contributing 79.48 per cent of the total trading volume and 66.81 per cent of the total value traded on the Exchange.
Market analysts attributed the sector’s continued dominance to sustained investor interest in banking stocks amid expectations of strong half-year earnings and attractive dividend prospects.
The Services sector ranked second on the activity chart, with investors trading 164.914 million shares worth N3.615bn in 16,375 deals.
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The Consumer Goods sector followed with a turnover of 157.451 million shares valued at N7.777bn in 27,950 deals, making it the third most active industry during the review period.
First Holdco, Zenith Bank, Fidelity Bank account for over half of market value traded
Trading activity remained highly concentrated in a few heavily capitalised financial stocks.
The three most actively traded equities by volume, First Holdco Plc, Zenith Bank Plc and Fidelity Bank Plc, recorded a combined turnover of 1.745 billion shares worth N121.828bn in 31,053 deals.
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Together, the three stocks accounted for 47.85 per cent of the total volume traded during the week and 55.23 per cent of the overall market value, highlighting their continued appeal among both institutional and retail investors.
Investor sentiment improved significantly during the week, with the number of advancing stocks almost tripling compared to the previous trading week.
A total of 60 equities recorded price appreciation, compared with 22 gainers in the preceding week.
On the losers’ chart, 28 equities declined in value, a sharp improvement from the 57 stocks that depreciated in the previous week.
Meanwhile, 58 equities closed the week unchanged, compared with 67 stocks that maintained their previous prices in the preceding trading week.
The stronger market breadth indicates that buying interest was spread across a wider range of listed companies, reinforcing the positive momentum witnessed on the Exchange.
Market watchers say the sustained rally reflects growing investor confidence in Nigeria’s equities market, supported by improved corporate earnings expectations, renewed foreign investor interest and continued portfolio repositioning into fundamentally strong stocks.
They noted that while profit-taking may emerge in some counters following the recent gains, robust liquidity and expectations of strong half-year corporate results are likely to continue supporting market performance in the near term.