Nigerian Exchange Limited

NGX Index and Market Cap Up by 0.44%, Gains Hit N246bn

Published

4 weeks ago

May 30, 2024

The Nigerian equity market continued its upward trajectory for the third consecutive day as the Nigerian Exchange (NGX) All-Share Index (ASI) and market capitalisation closed in the green.

The Nigerian Exchange (NGX) All-Share Index (ASI) and market capitalisation increased by 0.44% on Wednesday. This upward movement translated into a significant gain of approximately N246 billion.

The NGX ASI closed at 98,818.04 points, up from the previous day’s 98,383.04 points.

Similarly, the market capitalisation rose to N55.90 trillion from N55.65 trillion, indicating a robust performance across various sectors.

Key contributors to the market rally included Abbey Mortgage Bank, which appreciated by 9.76% to close at N2.70 per share.

The National Salt Company of Nigeria (NASCON) followed closely with a 9.66% rise to N40.85 per share. First City Monument Bank (FCMB) also saw a significant gain of 9.63%, closing at N7.40 per share.

The positive sentiment was not limited to a few stocks; 28 other gainers also contributed to the market’s overall performance.

This widespread optimism among investors helped improve the year-to-date return from 31.6% to 32.2%, reflecting a more bullish outlook for the market.

The Consumer and Industrial Goods sectors were among the top performers. The Consumer Goods Index rose by 0.9%, driven by gains in Dangote Sugar and NASCON Allied Industries Plc.

The Industrial Goods Index saw a modest increase of 0.1%, supported by positive movements in West Africa Gas Pipeline Company.

Despite the overall positive trend, some stocks experienced losses. International Energy Insurance led the laggards, dropping by 9.68% to close at N1.40 per share.

Jaiz Bank shed 6.52% to close at N2.15, and Tantaliser fell by 6.00% to N0.47 per share.

The market saw a slight dip in trading volume and value, which decreased by 7.3% and 27.6%, respectively.

A total of 518.9 million units valued at N4.8 billion were traded on Wednesday, indicating a cautious yet optimistic trading environment.

Market analysts attribute the sustained rally to renewed investor confidence and strategic buy demands in key stocks such as Dangote Sugar, First Bank of Nigeria Holdings, and Zenith Bank.

“The consistent upward movement in the market reflects positive investor sentiment and a stable economic outlook,” said market analyst Chinedu Okafor.

As the market continues to show signs of strength, investors remain hopeful that the positive momentum will sustain. With the year-to-date return improving, market watchers are optimistic about future gains, especially if current economic conditions and investor sentiments remain favorable.

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Samed Olukoya

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Nigerian Exchange Limited

Nigerian Equities Market Sheds N103 Billion in Three-Day Trading of Last Week

Published

3 days ago

June 24, 2024

Samed Olukoya

In a brief yet impactful trading week marked by Eid-el-Kabir celebrations, Nigeria’s equities market closed in the red as the market shed a total of N103 billion in market capitalization.

Investors navigated through a condensed trading schedule that spanned just three days, with profit-taking activities predominantly affecting key sectors despite selective bargain hunting in others.

The Nigerian Exchange Limited (NGX) All-Share Index (ASI) closed the week at 99,743.05 points, reflecting a decline from the previous week’s high of 99,925.29 points.

Similarly, market capitalization dipped to N56.423 trillion, down from N56.526 trillion recorded in the preceding trading period.

Throughout the truncated trading sessions, the market experienced two days of negative closes, contrasting with one day of flat performance.

Analysts attributed the decline primarily to profit-taking activities across critical sectors such as insurance and banking, which overshadowed gains observed in oil & gas, consumer goods, and industrial stocks.

The NGX Oil & Gas Index saw a marginal decrease of 0.21 percent, while the NGX Banking Index dipped by 0.04 percent.

The NGX Insurance Index recorded the steepest decline, falling by 1.41 percent during the week.

On the other hand, the NGX Consumer Goods Index rose by 0.29 percent, and the NGX Industrial Index saw a modest increase of 0.10 percent.

Despite the downturn in market performance for the week, the year-to-date (YtD) return moderated to 33.39 percent, indicating a resilient overall performance in 2024.

Month-to-date (MtD), the market managed a slight uptick of 0.43 percent, underscoring the mixed sentiment and cautious trading observed among investors.

Market analysts and stakeholders emphasized the impact of profit-taking in driving the market’s decline and suggested that the upcoming weeks could see renewed activity depending on economic indicators and investor sentiment.

As Nigeria’s equities market continues to navigate various economic dynamics, stakeholders remain optimistic about potential recovery and growth opportunities amid evolving market conditions.

The holiday-shortened trading week underscored the volatility and resilience of Nigeria’s equities market, highlighting both challenges and opportunities for investors in the coming sessions.

Nigerian Exchange Limited

FBN Holdings, Fidelity Bank Lead Trades as Nigerian Stock Market Closes Flat

Published

7 days ago

June 21, 2024

Samed Olukoya

Nigerian Exchange Limited - Investors King

For the first time in weeks, Nigeria’s equities market closed flat on Thursday as investors adopted a cautious approach, taking a “wait-and-see” stance.

Despite active trading in major stocks such as FBN Holdings, Fidelity Bank, Transcorp, Access Holdings, and AIICO, the market showed no significant movement.

On Thursday, investors exchanged 1,299,961,984 shares worth N25.326 billion in 8,364 deals on the Exchange.

However, the trading activity did not translate into a market shift.

The NGX All-Share Index (ASI) and Market Capitalisation, which stood at 99,842.19 points and N56.478 trillion on the preceding trading day, closed Thursday at 99,842.94 points and N56.479 trillion, respectively.

This static closure occurred despite notable performances from stocks like Champion Breweries and Chams, which rallied.

Conversely, Transcorp Hotels Plc, NEM Insurance, and Fidelity Bank topped the list of laggards.

“We anticipate a mixed trading session with potential buy-side pressure in key names that could steer the market to a green close,” stated analysts from Lagos-based Vetiva Research in their post-trading note. “Investors are expected to monitor movements in high-performing stocks as well.”

Related developments highlighted the challenges facing investors. Rising diesel prices have surged by 66%, hitting the Northeast hardest.

The Naira remains weak at the official market despite rising external reserves, and prime office tenants face dilemmas with dollar-rents surging 200% in Naira value.

The flat close on Thursday underscores the cautious sentiment prevailing among investors in Nigeria’s equities market.

The market’s performance continues to reflect broader economic uncertainties and investor strategies focusing on stability and risk management.

Nigerian Exchange Limited

Foreign Equity Trading in Nigeria Jumps 437%, Reaches N334 Billion in Early 2024

Published

1 week ago

June 20, 2024

Samed Olukoya

Nigeria’s stock market has seen a remarkable surge in foreign investor activity, with equity trading by foreign investors skyrocketing 437% in the first four months of 2024.

This growth has pushed the total value of foreign equity trades to N334.01 billion, a significant increase from N62.18 billion during the same period in 2023.

Data from the Nigeria Exchange Limited (NGX) reveals that between January and April 2024, Nigerian stock investors exchanged equities valued at N1.894 trillion, a sharp rise from N721.44 billion recorded in the corresponding period of the previous year.

Foreign investors accounted for 17.63% of this total, while domestic investors dominated the market with 82.37%, trading N1.560 trillion worth of equities.

The increased foreign participation peaked in April 2024, with foreign investors trading N120.83 billion worth of stocks, representing 34.90% of the total value traded that month.

This surge highlights a growing confidence in Nigeria’s equity market despite broader economic challenges and a competitive fixed income market.

Analysts attribute this spike in foreign equity trading to various factors, including attractive stock valuations and improved regulatory frameworks.

“We expect continued interest in fundamentally sound stocks,” noted analysts at Comercio Partners, highlighting the positive market return of 33.64% by mid-June 2024.

Despite the attractiveness of fixed-income yields, particularly with Treasury bill rates reaching as high as 23.3% for one-year T-bills, participants remain drawn to equities, seeking growth in undervalued stocks.

Meristem research analysts predict a mixed performance in the equities market, driven by positive momentum and cautious trading.

The influx of foreign capital comes as a positive sign for Nigeria’s economic outlook, reflecting investor confidence in the nation’s regulatory and market reforms.

The NGX has been proactive in boosting market accessibility, recently launching a USSD platform to provide real-time stock market information, a move aimed at enhancing financial inclusion and market participation.

Prominent stockbroking firms have also played a crucial role in this trading boom.

CardinalStone Securities Limited led the market by trading stocks worth N197.535 billion, followed by Stanbic IBTC Stockbrokers Limited and United Capital Securities Limited.