Trading activities on the Nigerian Exchange Limited (NGX) strengthened significantly during the week, as investors exchanged 8.029 billion shares valued at N185.36bn in 160,836 deals, representing a 183.8 per cent increase in trading volume compared with the 2.829 billion shares worth N208.407bn traded in 192,158 deals in the preceding week.
Despite the substantial increase in traded volume, total transaction value declined by 11.05 per cent. In comparison, the number of deals fell by 16.3 per cent, indicating more trading in relatively lower-priced equities during the period.
The positive market sentiment also translated into an appreciation of the NGX All-Share Index (ASI), which advanced by 1.36 per cent to close the week at 252,269.16 points, compared with the previous week’s closing level of 248,877.22 points.
Similarly, the total market capitalisation of listed equities increased by approximately N2.2tn, representing a 1.36 per cent gain, to close at N163.79tn from N161.59tn recorded in the preceding week.
The performance reflects renewed buying interest across several segments of the equities market, although the decline in transaction value suggests that the increase in trading volume was not accompanied by a corresponding rise in the overall monetary value of transactions.
Sectoral performance was largely positive, as most of the market indices closed higher during the week, indicating improved investor sentiment across various sectors.
However, six indices recorded losses. The NGX Main Board Index declined by 0.06 per cent, while the NGX Banking Index shed 0.21 per cent.
The NGX AFR Bank Value Index depreciated by 0.49 per cent, while the NGX MERI Growth Index declined by 0.13 per cent.
The NGX Consumer Goods Index also lost 0.55 per cent, while the NGX Growth Index recorded the highest decline among the six underperforming indices, shedding 1.92 per cent during the review period.
An analysis of trading activities by sector showed that the Financial Services Industry dominated the market in terms of volume, accounting for 4.854 billion shares valued at N95.79bn traded in 72,047 deals.
The sector contributed 60.45 per cent of the total equity turnover volume and 51.68 per cent of the transaction value, reinforcing its dominant position in trading activities on the Exchange.
The Agriculture Industry followed with 2.243 billion shares worth N22.78bn exchanged in 5,884 deals, while the Consumer Goods Industry occupied third position with a turnover of 260.996 million shares valued at N11.89bn in 20,779 deals.
The three sectors collectively accounted for a significant proportion of trading activities during the week, with the Financial Services and Agriculture industries contributing substantially to the overall volume of transactions.
At the individual stock level, Linkage Assurance Plc, Livestock Feeds Plc and First Holdco Plc emerged as the three most actively traded equities by volume.
The three stocks recorded a combined turnover of 5.831 billion shares valued at N76.06bn in 9,544 deals.
Their combined transactions represented 72.63 per cent of the total equity turnover volume and 41.03 per cent of the total value of shares traded during the week, highlighting the concentration of market activities in the three equities.
The significant contribution of these stocks to overall trading volume underscores the influence of high-volume transactions in shaping market activity, particularly within the insurance, agriculture and financial services segments.
Market breadth also improved during the week, reflecting stronger investor participation in equities that recorded price appreciation.
A total of 43 equities appreciated, compared with 29 gainers recorded in the preceding week, representing an increase of 48.3 per cent in the number of advancing stocks.
Conversely, 39 equities recorded price depreciation, lower than the 57 decliners posted in the previous week, indicating a moderation in selling pressure across the market.
Meanwhile, 64 equities closed unchanged, compared with 60 equities recorded in the preceding week.
The market’s performance during the week therefore reflected an improvement in overall investor sentiment, supported by increased trading volume, a 1.36 per cent appreciation in the All-Share Index and an estimated N2.2 trillion addition to total market capitalisation.
