NGX rebounds, investors gain N1.293trn in one week

The Nigerian Exchange Ltd. (NGX) recorded a strong recovery this week, with investors gaining N1.293 trillion as renewed buying interest pushed the market higher.

The NGX All-Share Index rose by 0.81 per cent to close at 241,298.47 points, compared with 239,351.16 points recorded at the end of the preceding week.

Market capitalisation also climbed by 0.84 per cent from N154.533 trillion to N155.826 trillion.

The market operated for four trading sessions during the week because the Federal Government declared Tuesday, Aug. 25, a public holiday to commemorate Eid el-Maulud.

Dr Benneth Eze, Head of Research and Development at the Chartered Institute of Stockbrokers (CIS), linked the market’s recovery to renewed investor interest and bargain hunting.

He said investors used the opportunity created by lower share prices to increase their holdings in fundamentally strong companies, especially those in the banking and energy sectors as well as other large-cap stocks.

“The strong performance of large-cap stocks also helped lift overall market capitalisation,” he said.

Eze also identified improved sentiment among investors as a key driver of the positive performance.

He pointed to FTSE Russell’s confirmation that Nigeria would be reclassified to Frontier Market status from September 2026, saying the move could strengthen confidence in ongoing reforms in the country’s capital market.

According to him, the reclassification could also enhance Nigeria’s appeal and visibility among international investors.

Looking ahead, Eze said the market was likely to retain a cautiously positive outlook, although investors should expect periods of profit-taking and volatility.

“The recent reversal of the prolonged losing streak is encouraging, while strong year-to-date returns and improving sentiment provide some support for further gains,” he said.

He advised investors to remain selective, with preference for companies offering strong earnings, attractive valuations, solid fundamentals and sustainable dividend prospects.

Eze added that developments outside the domestic market, including expectations around global interest rates, crude oil prices and foreign investment flows, would also shape market sentiment in the coming week.

“Overall, I expect a moderate uptrend rather than a broad-based rally, with stock selection remaining critical,” he said.

Despite the overall positive performance, several NGX indices ended lower. The NGX Main Board, NGX Insurance, NGX MERI Growth, NGX Consumer Goods, NGX Lotus II, NGX Industrial Goods, NGX Growth and NGX indices fell by 0.10 per cent, 0.63 per cent, 2.21 per cent, 0.67 per cent, 1.03 per cent, 0.22 per cent, 0.001 per cent and 1.56 per cent, respectively.

Trading activity, however, declined significantly compared with the previous week.

Investors traded 2.507 billion shares valued at N123.223 billion in 173,561 deals, against 6.242 billion shares worth N157.764 billion exchanged in 186,496 deals in the preceding week.

The Financial Services Industry dominated trading, accounting for 1.977 billion shares valued at N71.563 billion across 79,586 deals.

The sector represented 78.87 per cent of total equity turnover by volume and 58.08 per cent by value.

The Services Industry ranked second, with 148.226 million shares worth N7.252 billion traded in 10,638 deals, while the ICT Industry came third with 117.982 million shares valued at N8.635 billion in 21,639 transactions.

Fortis Global Insurance Plc, Jaiz Bank Plc and First HoldCo Plc emerged as the most actively traded equities, with a combined 793.104 million shares valued at N26.898 billion changing hands in 14,758 deals.

The three stocks accounted for 31.64 per cent of total equity turnover volume and 21.83 per cent of its value.

Market breadth showed a slight improvement during the week, with 24 equities recording price gains, compared with 18 in the previous week.

The number of decliners fell to 55 from 59, while 68 equities remained unchanged, compared with 70 in the preceding week.

University Press, First HoldCo, Seplat Energy, Red Star Express and Transcorp Hotels led the gainers, rising by 90k, N15.05, N1,120, N1.45 and N23.60, respectively.

On the other hand, International Energy Insurance, Fidson Healthcare, Caverton Offshore Support Group, Zichis Agro-Allied Industries and Austin Laz recorded the biggest declines, shedding N1.03, N16.55, 75k, N2.50 and 34k, respectively.

The NGX also announced new securities listings during the week.

It informed trading licence holders that the July 2026 issue of the Federal Government Savings Bonds was admitted to the Exchange’s Daily Official List on Thursday, Aug. 27.

In addition, 2,369,390,970 ordinary shares of 50k each belonging to Prestige Assurance Plc were listed on Monday, Aug. 24.

A further 8,075,794,000 ordinary shares of 50k each of International Energy Insurance Plc were also admitted to the Daily Official List on the same day.