Market Inches Higher Despite Lower Volume, Mixed Sector Performance
The Nigerian Exchange Limited (NGX) closed the first trading day of the week on a slightly positive note, adding about N3 billion to market value as investors traded cautiously amid mixed sentiment across sectors.
Market capitalisation rose marginally to approximately N95.3 trillion, while the All-Share Index (ASI) gained 4.62 points to settle at 149,437.88 points, indicating mild buying interest despite subdued trading activity.
Trading statistics showed a slowdown in market turnover. Investors exchanged 553.16 million shares valued at N13.27 billion in 28,888 deals, representing a three per cent decline in volume and a 54 per cent drop in turnover compared with the previous trading session. However, the number of transactions increased by 42 per cent, suggesting selective positioning by market participants.
Analysts attributed the cautious trading pattern to ongoing portfolio rebalancing and profit-taking in some large-cap stocks, as investors weigh macroeconomic signals and near-term market direction.
Market breadth closed positive, with 28 stocks recording gains against 23 decliners, while the remaining equities closed unchanged. Sovereign Trust Insurance Plc led the gainers’ chart after rising by 10 per cent to close at N3.74 per share.
Guinness Nigeria Plc followed closely with a 9.96 per cent gain to N239.50, while MeCure Industries Plc advanced by 9.88 per cent to N41.70. First HoldCo Plc also posted a strong performance, appreciating by 9.86 per cent to close at N34.55. AIICO Insurance Plc and Alex Industries Plc were among other notable gainers.
On the flip side, Prestige Assurance Plc topped the losers’ table after shedding 10 per cent to close at N1.53. FTN Cocoa Processors Plc declined by 8.16 per cent to N4.50, while Guinea Insurance Plc fell by 7.69 per cent to N1.08.
Royal Exchange Plc dropped by 7.25 per cent to N1.79, while Nigerian Breweries Plc lost 6.86 per cent to close at N76.75, reflecting profit-taking in selected consumer goods stocks.
Sectoral performance was mixed during the session. Gains in the banking and insurance sectors helped support the broader market, while slight losses were recorded in some industrial and consumer goods stocks.
The Banking Index advanced by 0.89 per cent, while the Insurance Index rose by 0.87 per cent. In contrast, the NGX Top 30 Index slipped marginally by 0.08 per cent, indicating sell pressure in some heavyweight equities.
In terms of activity, FCMB Group Plc emerged as the most traded stock by volume, with 92.04 million shares exchanged. Access Holdings Plc followed with 67.93 million shares, while Consolidated Hallmark Holdings Plc recorded 50.78 million shares traded. Fidelity Bank Plc and Jaiz Bank Plc also featured among the most actively traded stocks.
By value, Vitafoam Nigeria Plc led market transactions, followed by Access Holdings Plc, GTCO Plc, First HoldCo Plc and FCMB Group Plc.
Market analysts said the modest N3bn gain reflected restrained investor confidence, influenced by mixed macroeconomic indicators and expectations around corporate earnings and policy direction.
They noted that while the equities market remains fundamentally resilient, short-term trading is likely to remain cautious, with profit-taking and selective stock picking dominating until clearer market catalysts emerge.
Overall, the slight increase in both the ASI and market capitalisation underscored underlying strength in the market, even as investors maintained a defensive posture.
Meanwhile, data from the Nigerian Exchange showed that investors traded 4.373 billion shares valued at N97.783 billion in 110,736 deals last week, marking a slowdown from the previous week’s 6.617 billion shares worth N113.224 billion exchanged in 109,590 deals.
Despite the lower trading volume, the market ended the week on a strong note, with the ASI and market capitalisation rising by 1.63 per cent and 1.64 per cent to close at 149,433.26 points and N95.264 trillion, respectively.
About the Author
