By Chukwuma Umeorah
Despite a shortened trading week due to public holidays, the Nigerian equities market extended its positive momentum, as the benchmark NGX All-Share Index rose by 0.71 per cent week-on-week to close at 115,429.54 points. This lifted the year-to-date return of the market to 12.15 per cent, reinforcing investor confidence in equities amid relative macroeconomic stability.
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Market capitalisation followed suit, appreciating by N512.52 billion to settle at N72.79 trillion. Analysts at Cowry Asset Management noted that the “gain, though modest, was significant in the context of the subdued market activity, reflecting underlying bullish sentiment and investors’ continued preference for risk assets in anticipation of macroeconomic tailwinds.”
However, the week’s performance came amid lower trading activity. A total turnover of 2.057 billion shares worth N51.015 billion was recorded in 65,016 deals, marking a 35.77 per cent and 32.31 per cent decline in volume and value respectively, compared to the previous week. Despite this dip in liquidity, the number of deals inched higher, suggesting increased interest in mid- and small-cap stocks.
The Financial Services sector led the activity chart with 1.06 billion shares valued at N26.37 billion, accounting for over half of the total turnover. It was followed by the Services and Consumer Goods sectors. Tantalizer Plc, Access Holdings Plc, and Zenith Bank Plc were the most traded equities, jointly accounting for 693.55 million shares worth N9.96 billion.
Investor sentiment was broadly positive, as 55 stocks advanced, up from 53 the previous week, while 39 declined and 54 remained unchanged. Leading the gainers’ chart was Legend Internet Plc, which appreciated by 32.77 per cent, followed by Berger Paints (30.73 per cent) and Ellah Lakes (27.35 per cent). On the flip side, John Holt Plc shed 18.42 per cent, while Industrial & Medical Gases Nigeria and RT Briscoe both declined by double digits.
Sectoral performance was mixed. The NGX Consumer Goods and Industrial Goods indices rose by 1.32 per cent and 1.21 per cent respectively, buoyed by renewed interest in firms like Berger Paints, Dangote Sugar, and May & Baker. Conversely, the Oil & Gas index dipped by 1.22 per cent, dragged by selloffs in Conoil and Aradel. The Insurance and Commodity indices also posted slight losses.
Cowry projected a “mildly bullish” trading activity to persist for the coming week, particularly if the anticipated May inflation figures confirm a deceleration. “A positive inflation surprise could strengthen investor appetite for equities while rendering fixed income assets less attractive in the near term,” Cowry Asset noted.
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