Equities Market surges, investors gain N3.733trn in one week

By Taiye Olayemi

Investors in the Nigerian equities market recorded a N3.733 trillion gain this week as the Nigerian Exchange Ltd. (NGX) All-Share Index and market capitalisation rose by 2.36 per cent and 2.40 per cent respectively.

The NGX All-Share Index closed the week at 246,992.44 points, up from 241,298.47 points recorded in the previous week, while market capitalisation increased from N155.826 trillion to N159.559 trillion.

The performance translated into a N3.733 trillion increase in the value of investors’ holdings during the week.

Market activity also strengthened significantly, with investors trading 4.360 billion shares worth N210.331 billion in 223,284 deals, compared with 2.507 billion shares valued at N123.223 billion in 173,561 deals in the preceding week.

The Financial Services Industry dominated trading activity, accounting for 3.580 billion shares valued at N88.635 billion in 99,488 deals.

The sector contributed 82.10 per cent of total equity turnover by volume and 42.14 per cent by value.

The Consumer Goods Industry followed with 188.039 million shares worth N15.343 billion traded in 24,518 deals, while the Services Industry ranked third with 142.292 million shares valued at N2.020 billion in 14,007 deals.

Trading in three leading equities — Fortis Global Insurance Plc, United Bank for Africa Plc and Access Holdings Plc — generated 2.287 billion shares worth N35.232 billion in 20,975 deals.

The trio accounted for 52.46 per cent of total equity turnover by volume and 16.75 per cent by value.

Investor sentiment improved during the week, with 56 equities recording price gains, more than the 24 equities that appreciated in the previous week.

In contrast, 35 equities declined, compared with 55 losers in the preceding week, while 56 equities remained unchanged, down from 68 recorded in the previous week.

Royal Exchange, Champion Breweries, Nigerian Breweries, Coronation Insurance and McNicholas emerged as the week’s top gainers, appreciating by 22k, N2, N13.05, 35k and 75k respectively.

On the losing side, Beta Glass, Nascon Allied Industries, Red Star Express, RT Briscoe and University Press recorded the steepest declines, falling by N97.80, N31, N2.20, N1.50 and 70k per share respectively.

The Exchange also recorded a series of additional share listings during the week.

The NGX notified trading licence holders that an additional 4.533 billion ordinary shares of Coronation Insurance Plc, each with a nominal value of 50k, were listed on the Daily Official List of the Exchange on Aug. 31.

Similarly, 2.573 billion additional ordinary shares of Sterling Financial Holdings Company Plc and 2.510 billion ordinary shares of Sovereign Trust Insurance Plc were listed on Aug. 31.

The Exchange also listed an additional 2.075 billion ordinary shares of Sunu Assurances Nigeria Plc on Aug. 31.

On Sept. 4, an additional 68.728 million ordinary shares of Eunisell Interlinked Plc and 2.674 billion ordinary shares of Regency Alliance Insurance Plc were listed on the NGX.

Overall, the week’s performance reflected stronger trading activity and broader positive sentiment, with the market posting gains across most indices despite declines in the NGX Industrial Goods and NGX Sovereign Bond indices, which fell by 0.35 per cent and 0.36 per cent respectively.