NGX Market Cap Rises N187bn As Buying Interest Lifts Index

Buying interest in selected equities lifted the Nigerian Exchange (NGX) market capitalisation by N187 billion week-on-week, despite broad-based weakness across the market.

The benchmark NGX All-Share Index (ASI) gained 0.12 per cent to close the week at 245,573.60 points, while market capitalisation rose from the previous level to N158.513 trillion.

The modest gain also pushed the market’s year-to-date return to 57.81 per cent, reflecting the continued strong performance of Nigerian equities despite recent profit-taking and mixed sectoral performance.

However, the positive movement in the benchmark index masked a broadly weak market, as declining stocks significantly outnumbered gainers during the week.

A total of 26 stocks appreciated, compared with 63 decliners, indicating cautious investor sentiment and selective buying across the market.

AVA Capital emerged as the week’s biggest gainer, appreciating by 33.33 per cent to close at N11.00 per share. FCMB Group followed with a 13.10 per cent gain to N12.95, while First Holdco rose by 12.23 per cent to N145.40 per share.

On the decliners’ side, Thomas Wyatt Nigeria led the losers, shedding 26.71 per cent to close at N3.21 per share.

Trans-Nationwide Express followed with a decline of 23.76 per cent to N2.15, while Critical Minerals Financing Corporation lost 22.68 per cent to close at N3.00 per share.

Trading activity remained relatively strong during the week, with investors exchanging 5.359 billion shares valued at N139.053 billion in 261,869 deals.

This compared with the 5.119 billion shares worth N404.762 billion traded in 285,223 deals in the previous week.

Despite the higher volume of shares traded, the sharp decline in the value of transactions reflected lower activity in some high-value counters compared with the previous week.

Market analysts said investor sentiment could remain cautiously positive in the coming week, with attention expected to shift increasingly towards corporate earnings and the outlook for dividends.

Cowry Assets Management Limited said investors were likely to continue positioning in fundamentally strong stocks ahead of the earnings season, although profit-taking in recently appreciated counters and mixed sector performance could constrain further gains.

The investment firm said market sentiment would also be influenced by corporate earnings releases, dividend expectations and developments in the macroeconomic environment, particularly movements in interest rates and fixed-income yields.

It added that continued sector rotation was expected, with investors likely to favour fundamentally strong banking stocks and other quality large-cap equities while maintaining a selective approach.

The outlook suggests that while buying interest in key counters may continue to provide support for the benchmark, the negative market breadth could keep the equities market in a cautious trading mode in the near term.