Nigeria’s equities market staged a strong recovery last week, adding about N4.57 trillion to investors’ wealth as renewed buying interest lifted major stocks on the Nigerian Exchange Limited (NGX).
The rebound came despite the ongoing N2.2 trillion Initial Public Offering (IPO) of Dangote Petroleum Refinery, which has attracted significant investor attention and capital from the market.
The latest gain reverses part of the losses recorded in the previous trading week, when investors lost approximately N1.9 trillion amid widespread profit-taking in several major equities.
According to market data, the NGX market capitalisation rose to N162.157 trillion, up from N157.587 trillion recorded at the end of the preceding week.
Similarly, the NGX All-Share Index (ASI), the benchmark used to track the overall movement of listed equities, climbed to 249,804.56 points, compared with 243,052.74 points previously.
The increase indicates renewed investor demand across selected large and actively traded stocks.
Trading activity remained strong during the week, with investors exchanging 3.249 billion shares valued at N237.986 billion in 287,919 deals.
This compares with 3.647 billion shares worth N130.151 billion traded in 244,777 deals during the previous week.
Although the total number of shares traded declined, the value of transactions increased substantially, reflecting heavier trading in higher-value securities.
The Financial Services Industry dominated trading by volume, accounting for 2.581 billion shares valued at N97.212 billion across 138,900 deals.
The sector contributed 79.43 per cent of total equity turnover volume and 40.85 per cent of turnover value during the week.
The Services Industry ranked second, recording 131.102 million shares worth N2.731 billion in 15,084 deals.
The ICT Industry occupied third position, with 114.622 million shares valued at N21.541 billion traded in 29,152 deals.
Three equities accounted for a significant portion of the market’s trading volume during the week.
Fidelity Bank Plc, Sterling Financial Holdings Company Plc and Mutual Benefits Assurance Plc jointly recorded 1.229 billion shares valued at N15.942 billion in 7,796 deals.
Together, the three stocks represented 37.83 per cent of total equity turnover volume and 6.70 per cent of the total turnover value.
The figures highlight the continued concentration of trading activity around a relatively small number of highly active equities.
Market analysts at InvestData Consulting Limited attributed the rebound to improved buying activity following the weakness witnessed earlier in the month.
The analysts said investors were now watching whether the recovery could develop into a more sustained upward movement or whether profit-taking would return as the market approaches important technical levels.
According to the analysts, the market’s short-term recovery remained intact, but investors were likely to exercise caution as the NGX All-Share Index approaches the 250,000-point level.
They noted that sustained buying in large-capitalisation stocks could provide the momentum required for the index to move higher.
However, they cautioned that if buying activity remains concentrated in only a small number of stocks, the broader market may find it difficult to sustain the current pace of recovery.
The market’s performance is also being watched against the backdrop of the ongoing Dangote Petroleum Refinery IPO, valued at about N2.2 trillion.
The offering represents a major capital-market transaction and has the potential to influence the allocation of investor funds across other listed equities.
Despite the IPO, last week’s rise in market capitalisation shows that investors continued to channel significant funds into the secondary equities market.
For investors, the coming sessions are expected to provide further clues on whether the latest gains represent the beginning of a broader recovery or a temporary rebound following the previous week’s sell-off.
The 250,000-point level on the ASI, alongside trading volumes and the performance of large-capitalisation stocks, is likely to remain a key area of attention as the market enters the new trading week.
RapidoSpace News will continue to monitor developments in Nigeria’s capital market and provide updates on major movements affecting investors and business
