Equities’ investors record $3bn weekly gain

Equities investors on the Nigerian Exchange (NGX) gained about N4.08 trillion, equivalent to roughly $3 billion, last week as bullish sentiment and heavy buying in select counters lifted the market. The rally was driven largely by strong price appreciation in stocks such as RT Briscoe and Zichis, both of which surged more than 60 per […]

Equities investors on the Nigerian Exchange (NGX) gained about N4.08 trillion, equivalent to roughly $3 billion, last week as bullish sentiment and heavy buying in select counters lifted the market.

The rally was driven largely by strong price appreciation in stocks such as RT Briscoe and Zichis, both of which surged more than 60 per cent during the week.

The NGX sustained its upward momentum, extending its winning streak amid heightened trading activity and strengthening investor confidence. The All-Share Index (ASI) closed at 171,727.49 points, representing a week-on-week gain of 3.84 per cent.

Consequently, market capitalisation rose by the same margin to N110.23 trillion from N106.15 trillion in the previous week, translating to a value gain of approximately N4.08 trillion.

The positive performance pushed the market’s year-to-date return to 10.93 per cent, as investors positioned ahead of the release of January’s inflation data.

Market breadth remained firmly positive at 2.06x, with 70 gainers outpacing 34 decliners, reflecting broad-based participation across sectors, according to Cowry Asset Management Limited.

Trading activity also strengthened during the week. Total deals, traded volume, and traded value increased by 8.23 per cent, 25.08 per cent, and 58.12 per cent, respectively, week-on-week. Investors exchanged 3.86 billion shares worth N128.99 billion across 240,364 deals.

Sectoral performance was broadly upbeat, with most indices closing higher despite pockets of profit-taking.

The Oil and Gas index led gains, climbing 10.88 per cent week-on-week, followed by the Commodities sector, which advanced 6.30 per cent on the back of strong price appreciation in counters such as Aradel and Seplat.

The Consumer Goods and Industrial Goods sectors also posted solid gains of 4.40 per cent and 4.36 per cent, respectively. Cowry Asset noted that consumer stocks benefited from price stability and selective accumulation, particularly Union Dicon and Nascon, while bargain-hunting supported industrial names such as Austinlaz, Berger, and Prempaints.

Banking stocks maintained their positive momentum, with the sector rising 3.57 per cent, supported by renewed buying interest in FirstHoldco and Stanbic, as investors continued to favour fundamentally resilient financial institutions.

The Insurance sector was the only laggard, declining 2.33 per cent amid persistent profit-taking in Cornerstone and Sunu Assurances.

RT Briscoe led the gainers’ chart with a 60.7 per cent surge, followed by Zichis (+60.4 per cent), Abbey Mortgage Bank (+59.0 per cent), Union Dicon (+49.1 per cent), and Austinlaz (+38.5 per cent), largely driven by strong accumulation.

On the downside, DEAP Capital (-27.4 per cent), UHOMREIT (-27.0 per cent), Red Star Express (-17.5 per cent), UPDC REIT (-12.3 per cent), and Cornerstone (-12.2 per cent) recorded the steepest losses.

Looking ahead, Cowry Asset said it expects the market to retain a positive bias.

“In the near term, we expect the Nigerian equities market to maintain a positive tone, supported by sustained investor interest in fundamentally strong stocks and improving market breadth,” the firm said.

“Elevated trading activity and broad-based sectoral gains suggest sentiment remains constructive, particularly in sectors benefiting from earnings releases and valuation-driven accumulation.”