NGX rally lifts market capitalisation by N2.6trn, investors reap strong weekly gains

By Seun Ibiyemi

Equities investors on the Nigerian Exchange Limited (NGX) recorded a substantial gain of N2.578 trillion in the week under review, driven by a broad-based rally that lifted share prices and expanded market capitalisation.

Data from the Exchange showed that the NGX All-Share Index (ASI) advanced by 2.36 per cent to close at 166,129.50 points, while total market capitalisation rose by 2.48 per cent to N106.354 trillion, up from 162,298.08 points and N103.776 trillion recorded in the preceding week.

The expansion in capitalisation translated into a total wealth gain of N2.578 trillion for investors within the period.

Sectoral performance remained largely positive, with all indices closing in the green except the NGX AFR Dividend Yield Index, which declined marginally by 0.15 per cent, reflecting mild profit-taking in dividend-paying stocks.

Investor confidence was also evident in trading activity, as total turnover increased to 4.607 billion shares valued at N130.636 billion in 263,439 deals, compared with 4.164 billion shares worth N94.026 billion traded in 248,254 deals in the previous week.

The Financial Services sector dominated market activity, accounting for 3.126 billion shares valued at N47.225 billion traded in 94,186 deals.

The sector contributed 67.84 per cent of total equity volume and 36.15 per cent of total value, underscoring strong investor interest in banking and financial stocks.

The Services and ICT sectors followed, recording turnovers of 353.436 million shares worth N5.096 billion and 277.263 million shares valued at N18.009 billion, respectively.

Trading in Sovereign Trust Insurance Plc, Access Holdings Plc and Linkage Assurance Plc led market volume, jointly accounting for 1.406 billion shares valued at N9.735 billion in 11,732 deals, representing 30.52 per cent of total volume and 7.45 per cent of total value.

Market breadth remained positive, reflecting sustained investor optimism. Eighty equities appreciated in price during the week, compared with 84 in the previous week, while 17 equities declined, down from 22.

Fifty stocks closed flat, higher than the 42 recorded in the prior week.
NCR Nigeria, SCOA, Deap Capital Management, Jaiz Bank and Omatek Ventures emerged as the top gainers, posting strong price appreciation that contributed to the overall rise in market capitalisation.

Conversely, Ikeja Hotel, Austinlaz, Eterna, Universal Insurance and Eunisell Interlinked were the worst-performing stocks, recording price declines during the period.

Meanwhile, the NGX recorded fresh listings that further boosted market depth and capital base.

United Bank for Africa Plc listed an additional 3.156 billion ordinary shares of 50 kobo each following its rights issue, raising the bank’s total issued and fully paid-up shares to 44.196 billion.

The Exchange also announced the listing of additional shares of Morison Industries Plc from its private placement, increasing its issued share capital to 1.256 billion shares.

Overall, the strong rally and expansion in market capitalisation underscored renewed investor appetite for equities, reinforcing the NGX’s position as a key platform for wealth creation and capital formation.