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Nigerian Exchange Sees N1.06 Trillion Growth as FCMB, LASACO List New Offers

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Nigerian Exchange Sees N1.06 Trillion Growth as FCMB, LASACO List New Offers
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The Nigerian Exchange (NGX) recorded a significant gain of N1.06 trillion following the supplementary listings of FCMB Group Plc and LASACO Assurance Plc. The local bourse ended January on a positive note, posting a 1.53% gain, while the All-Share Index (ASI) advanced by 0.87% week-on-week to settle at 104,496.12 points.

According to Cowry Asset Limited, market activity was fueled by an influx of corporate earnings reports, which highlighted strong financial performance and raised investor expectations for attractive dividend payouts. This bullish sentiment reinforced confidence in the market, as the stock market capitalization climbed by 1.67%, closing the week at N64.71 trillion.

Market Performance and Leading Gainers

Several stocks emerged as top performers, reflecting strong investor accumulation. Chellerams Plc led the market with an impressive 60.4% surge, followed by Vitafoam Plc, which gained 31.5%. Other notable gainers included Beta Glass Plc and NNFM Plc, both rising by 21%, while Skyway Aviation Handling Company Plc (SKYAVN) advanced 20.7%.

Conversely, some stocks faced sell-offs. Veritas Kapital Assurance Plc suffered the steepest decline, plummeting 29.7%, while MRS Oil Nigeria Plc dropped 19%. Additionally, Neimeth Pharmaceuticals Plc shed 14.5%, Linkage Assurance Plc fell 13.8%, and NSL Tech Plc recorded a 13.6% decline.

Sectoral Performance and Trading Activity

Market breadth remained strong, with 52 stocks recording gains against 44 decliners. Sector-wise, four out of six tracked indices closed in positive territory:

  • Consumer Goods Index surged by 4.01%, driven by renewed interest in Vitafoam, NNFM, Nigerian Breweries, and Nestlé.
  • Banking Index gained 2.54%, supported by investor demand for key banking stocks.
  • Commodity Index advanced 1.78%, while the Oil and Gas Index inched up by 0.97%, fueled by buy-side interest in Okomu Oil, Presco, Jaiz Bank, Wema Bank, Aradel, and Eterna.

On the downside, the Insurance Index declined due to losses in Veritas Kapital, Linkage Assurance, and Guinea Insurance, while the Industrial Index dipped as John Holt, Cutix, and Dangote Cement faced selling pressure.

Trading activity presented a mixed picture, with the total volume of shares traded rising by 3.60% to 3.24 billion units across 77,269 deals. However, the total transaction value declined by 9.61% to N69.19 billion.

Outlook: Bullish Sentiment Expected to Persist

Market analysts at Cowry Asset Limited project that the bullish momentum will continue as more corporate earnings are released, increasing investor anticipation for dividend announcements. While technical indicators provide mixed signals, stockbrokers suggest that rising traded volumes indicate cautious optimism, creating opportunities for strategic investors.

As earnings season unfolds, Cowry Research advises investors to focus on fundamentally strong stocks to capitalize on the market’s upward trend while navigating potential profit-taking phases.

The NGX remains in a “wait-and-see” phase, with traders leveraging market volatility to maximize gains by strategically buying low and selling high.

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