Equity market gains N77bn, nears N60tn capitalisation

The Nigerian equity market recorded a gain of N77bn in the past week, bringing the total market capitalisation closer to the anticipated N60tn threshold. The market capitalisation is currently N59.29tn.

The All-Share Index appreciated by 0.11 per cent to close at 97,829.02 points, reflecting positive market sentiment.

A total turnover of 1.95bn shares worth N35.86bn was recorded in 48,553 deals during the week, compared to 1.48bn shares valued at N38.88bn traded in 44,795 deals the previous week.

The Financial Services Industry led by volume, as it traded 1.041bn shares worth N16.207bn in 21,099 deals, contributing 53.34 per cent and 45.19 per cent of the total equity turnover volume and value, respectively.

The Oil and Gas Industry followed with 273.407m shares valued at N6.717bn in 5,489 deals, while the Services Industry came third, with 141.184m shares worth N779.166m in 3,072 deals.

Notably, trading in Japaul Gold and Ventures Plc, FBN Holdings Plc, and Access Holdings Plc accounted for a combined 461.5 million shares valued at N6.183bn in 4,658 deals, representing 23.64 per cent and 17.24 per cent of total equity turnover volume and value, respectively.

The week saw a better performance by equities as 52 stocks appreciated in price, up from 39 in the previous week. Top gainers included Eunisell Interlinked Plc (+60.72 per cent), Tantalizers Plc (+57.33 per cent), and John Holt Plc (+42.49 per cent).

Conversely, 33 equities declined, fewer than the 46 recorded in the prior week. The biggest losers were Mecure Industries Plc (-18.53 per cent), Multiverse Mining and Exploration Plc (-17.61 per cent), and FBN Holdings Plc (-7.97 per cent).

Across sectors, performance was bullish as four indices gained, and one lost while the Information and Communication Technology index closed flat.

Leading the gainers, the Insurance and Consumer Goods indices advanced 4.5 per cent and 1.9 per cent week on week respectively on the back of buy-interest in Sunu assurance (+16.2 per cent), Mansard Insurance (+13.4 per cent), Unilever (+20.8 per cent), and Dangote sugar (+16.7 per cent).

Trailing, price appreciation in Wapco (+28.6 per cent), Beta glass (+9.5 per cent), and Japaulgold (+7.0 per cent) per cent pushed the Insurance and Oil & Gas indices higher by 1.8 per cent and 0.2 per cent respectively. Conversely, selloffs on Access Holdings plc (-7.5 per cent) and STERLING (-5.6 per cent) drove the Banking index down 2.6 per cent.

According to Afrinvest, the stock market is expected to experience a reversal in its positive momentum, as profit-taking activities and a risk-averse response to the anticipated hawkish stance of the Monetary Policy Committee weigh on investor sentiment.

“Next week, we anticipate the bourse to reverse the positive momentum, driven by profit-taking activities and risk-off reaction to the expected hawkish tilt of the MPC,” the firm stated.