NGX posts 0.20% weekly growth amid cautious trading mood

The Nigerian Exchange (NGX) closed last week in positive territory, with the All-Share Index (ASI) recording a 0.20% week-on-week gain despite a generally cautious market mood.

The modest growth was driven by renewed interest in fundamentally strong stocks, spurred by the release of fresh half-year earnings from major banks. However, profit-taking and sell-offs across several banking tickers kept investor sentiment restrained.

Portfolio rebalancing and selective positioning also shaped activity, as investors weighed new macroeconomic data showing headline inflation eased slightly to 20.12% in August.

By the close of trading on Friday, the ASI rose to 142,133.02 points, up from 141,845.34 points the previous week. Market capitalization similarly appreciated by 0.24% to ₦89.96 trillion, compared to ₦89.74 trillion previously. This lifted the year-to-date return to 38.09%.

Surge in market activity

Market activity saw a sharp rebound, with trading volume up 181% week-on-week, while transaction value surged 480%. Total turnover stood at 7.68 billion units valued at ₦494.20 billion.

The spike was largely driven by a significant trade in Consolidated Hallmark Holdings, which saw about 333 million shares exchanged on September 25.

Market breadth weakens

Market breadth, however, weakened. Thirty-two equities gained during the week, down from 40 in the prior week. Meanwhile, 51 equities declined, higher than the previous 41, while 64 closed unchanged, compared to 66 the week before.

Most sectoral indices closed higher except for the NGX CG (-0.08%), NGX Pension (-0.15%), NGX Insurance (-0.91%), NGX MERI Growth (-0.35%), NGX Oil and Gas (-1.62%), NGX Lotus II (-0.52%), NGX Pension Broad (-0.07%) and NGX Commodity (-0.91%). The NGX ASeM and NGX Sovereign Bond indices were flat.

Top gainers

Thomas Wyatt led the gainers’ chart, rising 22.68% to close at ₦3.30 from ₦2.69. Secure Electronic Technology and Mecure advanced 21.33% and 20.83% respectively, while Chellaram gained 11.30% and Royal Exchange added 10.29%.

Other notable gainers included The Initiates (10.17%), International Breweries (10.08%), Eunisell (9.98%), Chams (9.68%) and Stanbic IBTC (9.29%).

Top losers

Wema Bank topped the losers’ chart, shedding 12.51% to close at ₦18.00 from ₦20.55. Fidelity Bank lost 11.08%, Eterna 10.00%, Ikeja Hotel 9.80% and African Prudential 9.09%.

Cutix (-8.57%), Deap Capital (-8.51%), Union Dicon (-8.16%), May & Baker (-7.43%) and Caverton (-5.30%) also recorded notable declines.