Banking stocks, Oando, others add N349bn to investor’s portfolios
Equity investors saw a weekly gain of N349 billion as the market capitalization of the Nigerian Exchange Ltd. (NGX) rose by 0.63% over the week. The All-Share Index ended at 96,579.54 points, up from 95,973.45 points at the start. The market capitalization increased from N55.129 trillion to N55.478 trillion.
This positive trend was fueled by gains in stocks such as FBN Holdings, Ecobank Transnational Incorporated (ETI), Stanbic IBTC, Oando Plc, and Total Energies, among other significant contributors.
Most indices ended the week higher, with the exceptions being NGX CG, NGX Premium, NGX AFR Div Yield, and NGX Pension Broad, which saw declines of 0.42%, 1.72%, 2.38%, and 0.07%, respectively. The NGX ASeM and NGX Sovereign Bond indices remained unchanged.
During the week, 56 equities saw price increases, an improvement from 43 the previous week. Conversely, 26 equities experienced price declines, down from 34 the previous week, while 69 equities held steady, compared to 74 in the prior week.
Oando Plc led the gainers with a 60.71% increase, closing at N76.90 per share. On the other hand, Transnational Power Plc topped the losers with a 9.99% decrease, ending at N335.20 per share.
A total of 2.821 billion shares valued at N53.048 billion were traded in 50,488 deals this week, compared to 5.641 billion shares worth N33.052 billion in 42,006 deals the previous week.
The Financial Services sector led trading activity with 1.857 billion shares worth N15.825 billion in 19,937 deals, contributing 65.82% of the total volume and 29.83% of the value. The Oil and Gas sector followed with 288.807 million shares valued at N11.302 billion in 9,365 deals. The Services sector was third with 177.666 million shares worth N437.174 million in 3,604 deals.
Trading in the top three equities—Consolidated Hallmark Holdings Plc, Veritas Kapital Assurance Plc, and Access Holdings Plc—accounted for 862.499 million shares valued at N3.795 billion in 3,511 deals, contributing 30.57% of the total volume and 7.15% of the total value.
Looking forward, analysts at Cowry Asset Management Ltd. expect the current market sentiment to persist. They anticipate increased position-taking and portfolio adjustments as the September trading month approaches. “Technically, the NGX shows signs of recovery, supported by candlestick patterns and momentum indicators, with investors likely to seize opportunities to acquire undervalued stocks,” the analysts noted.
