Equity market gains N704bn

The Nigerian equity market gained N704bn in six days, pushing the market capitalisation above N60tn.

At Monday’s close, investors gained N330bn, and market capitalisation hit N60.6tn, with 740.89 million shares worth N16.88bn traded in 10,430 deals. This represented a 39 per cent increase in trading volume, a 127 per cent surge in turnover, and a 23 per cent rise in the number of deals compared to the previous Friday.

Sterling Bank led trading with 197 million shares, followed by Wema Bank with 150 million shares, E-Tranzact International with 70.1 million shares, and Access Holdings with 20.5 million shares.

Out of 122 listed equities, 35 gained while 25 declined. LivingTrust Mortgage Bank led gainers, rising 10 per cent to N3.30 per share. Other gainers included Royal Exchange (+10 per cent to N0.66), International Breweries (+9.9 per cent to N4.55), and Guinea Insurance (+9.84 per cent to N0.67).

For the laggards, University Press recorded the steepest loss, falling 9.81 per cent to N3.77. Haldane McCall dropped 9.62 per cent to N4.70, while International Energy Insurance and Associated Bus Company fell by 9.52 per cent and 8.7 per cent, respectively.

In the prior week, the market gained N374bn, with the All-Share Index rising by 1.19 per cent to close at 99,378.06, and market capitalisation ending at N60.242tn.

Investors traded 2.73bn shares worth N49.85bn in 43,298 deals. The Financial Services sector dominated activity with 1.705bn shares worth N18.87bn traded in 19,203 deals, contributing 62.48 per cent of volume and 37.87 per cent of value.

The Oil and Gas index rose 7.6 per cent, and the Insurance index gained 5.5 per cent, driven by buying interest in Conoil, Oando, Wapic Insurance, and Sunu Assurances.

The AFR-ICT index increased 1.1 per cent, supported by MTN Nigeria, while consumer goods rose 1.0 per cent, led by PZ Cussons and Guinness Nigeria. The banking index rose marginally by 0.2 per cent.

In the fixed-income market, the Central Bank offered N275.78bn in treasury bills, with 91-day and 182-day rates steady at 18.00 per cent and 18.50 per cent. The 364-day rate fell to 22.80 per cent from 22.93 per cent.

In the secondary market, average treasury bill yields dipped 2 basis points to 25.70 per cent, while bond yields rose 3 basis points to 19.50 per cent. Eurobond yields climbed to 9.36 per cent from 9.18 per cent, reflecting profit-taking and concerns over a rise in US inflation to 2.70 per cent.

Afrinvest analysts predict cautious trading as the NGX approaches the 100,000-point psychological mark, which could prompt minor corrections.

“In the coming week, we expect cautious trading as the local bourse approaches the 100,000-point psychological level where minor corrections in trends can be expected.”