Investors gain N115bn on NGX despite lower trading volume
The Nigerian Exchange Limited (NGX) opened the week on a bullish note as investors gain N115bn in market capitalization, driven largely by renewed interest in the banking and oil and gas sectors.
The rebound came despite a decline in overall market volume and value, underscoring the impact of strong performances from tier-one banks and major energy firms.
At the close of trading on Monday, market capitalization advanced to ₦90.1 trillion from ₦89.99 trillion in the previous session.
Similarly, the All-Share Index (ASI) rose by 244.51 points, representing a 0.17 percent gain, to close at 142,377.54 basis points.
Market statistics revealed that investors exchanged 383.91 million shares worth ₦11.61 billion in 28,088 deals.
This represented a 26 percent drop in trade volume and a 36 percent decline in trade value compared to Friday’s session.
However, the number of deals improved by 26 percent, showing that market participation remained strong despite reduced liquidity.
Banking and oil stocks fuel rally as investors gain N115bn
The gains were attributed to bullish sentiment around major banking and oil stocks, particularly Fidelity Bank, Zenith Bank, Seplat Energy, and Eterna.
Their performances buoyed both the NGX Banking Index, which appreciated 0.47 percent, and the NGX Industrial Index, which gained 1.59 percent.
A total of 125 equities traded during the session, with 25 recording gains and 36 posting losses.
The standout performer of the day was SFS Real Estate Investment Trust, which advanced 10 percent to close at ₦346.55 per share.
Thomas Wyatt Nigeria followed with another 10 percent rise to ₦3.63 per share.
LivingTrust Mortgage Bank rose 9.9 percent, while Eterna gained 9.86 percent to settle at ₦30.65 per share.
On the flip side, AXA Mansard Insurance topped the losers’ chart, shedding 10 percent to close at ₦14.40 per share.
University Press fell 9.85 percent, Learn Africa declined 9.72 percent, while Julius Berger dropped 8.7 percent to ₦136.50 per share.
Trading activity supports market as investors gain N115bn
In terms of trading activity, First HoldCo emerged as the most traded stock with 47.5 million units valued at ₦1.47 billion.
Ellah Lakes followed closely with 24.46 million shares worth ₦290.87 million, while Veritas Kapital Assurance accounted for 21.87 million shares worth ₦44.66 million.
Zenith Bank also featured prominently, trading 18.75 million shares worth ₦1.31 billion.
Index performance showed the NGX Top 30 Index gained 0.26 percent, while the Main Board Index appreciated by 0.31 percent.
The Premium Board Index, however, dipped marginally by 0.13 percent. Year-to-date, the ASI has returned 38.33 percent, reflecting investors’ continued appetite for Nigerian equities despite volatility in select counters.
Corporate earnings boost sentiment as investors gain N115bn
Investor optimism was further strengthened by the release of corporate earnings.
Zenith Bank reported a 19.96 percent revenue growth and declared an interim dividend of ₦1.25 per share, while United Bank for Africa posted a six percent rise in profit after tax but slashed its interim dividend to 25 kobo.
Stanbic IBTC Holdings recorded a strong 49 percent growth in profit after tax and announced a dividend of ₦2.45 per share, while Guaranty Trust Holding Company reported a 50 percent decline in profit after tax but still rewarded shareholders with a ₦1 dividend.
Other listed firms, including BUA Foods, Cutix, Red Star Express, and Sovereign Trust Insurance, also released earnings reports that contributed to market direction.
Analysts’ outlook as investors gain N115bn
Analysts observed that the earnings releases and sectoral momentum demonstrate the resilience of Nigeria’s corporate sector in the face of macroeconomic headwinds.
They pointed out that the recovery in oil production, expansion in non-oil activities, and looser monetary policy are all improving market confidence.
However, they cautioned that while opportunities remain in energy, ICT, agriculture, and banking, investors should adopt diversification strategies to manage risks.
Globalview Capital Limited, a licensed investment firm regulated by the Securities and Exchange Commission, stressed that investor confidence is gradually returning, but consistent policy support will be needed to sustain the positive trend.
Market stability as investors gain N115bn
The bullish outing on the NGX shows that despite challenges in liquidity and declining trade volumes, investors gain N115bn demonstrates strong resilience in the Nigerian capital market.
With corporate earnings offering a boost and banking and oil stocks driving momentum, analysts believe the outlook remains cautiously optimistic.
As Nigeria strengthens crude oil output and monetary conditions ease, the capital market may continue to attract both domestic and foreign investors.
For now, the rally highlights investor confidence in the resilience of listed companies and the broader economy.
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