The equities segment of the Nigerian Exchange (NGX) closed in positive territory last week, as strong buying interest in Tier-1 banks propelled the local bourse to a N1.36 trillion weekly gain.
The benchmark All-Share Index (ASI) edged up by 1.03% week-on-week to close at 203,770.42 points, while market capitalization rose by 1.05% to reach N131.17 trillion.
According to an update from stockbrokers at Cowry Asset Limited, this performance represents a significant increase from the N837 billion gain recorded the previous week.
The year-to-date return improved to 30.95%, reflecting sustained positive momentum and a performance that continues to outpace inflation.
However, despite the overall growth in market value, market breadth remained negative at 0.46x, with only 25 stocks gaining compared to 54 decliners. This suggests that while large-cap stocks drove the indices higher, a broader range of equities faced selling pressure.
Trading activity saw a notable resurgence, reversing the previous week’s losses.
Data from the Nigerian bourse showed that the number of deals, trading volume, and total value traded surged by 6.62%, 17.67%, and 33.73% week-on-week, respectively. In total, investors traded 3.36 billion shares worth N152.13 billion across 230,368 deals, indicating robust market participation.
Sectoral performance was largely positive, as investors favored fundamentally strong and liquid counters.
The Banking sector led the rally with a 5.10% weekly advance, supported by significant interest in Tier-1 names such as Guaranty Trust Holding Company (GTCO), which rose by 10.66%, as well as Zenith Bank and FBN Holdings.
Stockbrokers noted that this rally reflects strategic positioning in resilient banks with attractive valuations.
The Consumer Goods sector followed with a 3.73% gain, buoyed by interest in NASCON Allied Industries and Guinness Nigeria.
Similarly, the Oil & Gas sector recorded a 2.67% uptick, driven by continued participation in energy plays like Seplat Energy and Aradel Holdings. The Industrial Goods sector posted a modest 0.80% gain, led by Lafarge Africa.
Conversely, the Insurance sector was the sole laggard, declining by 3.64% due to sell-offs in Sovereign Trust Insurance and Royal Exchange.
On the gainers’ chart, TRANSEXPR led with a 32.7% increase, followed by NGX Group and GTCO. On the losing end, DAAR Communications, RT Briscoe, and DEAP Capital topped the decliners’ list, reflecting ongoing profit-taking.