Key points
- Highcap Securities projects improved trading activity on the Nigerian Exchange Ltd. in the coming week due to the return of a full five-day schedule.
- The NGX All-Share Index and market capitalisation appreciated by 0.27 per cent to close the week at 250,385.47 points and N160.509 trillion, respectively.
- Investors traded 2.398 billion shares worth N111.480 billion in 241,313 transactions during the holiday-shortened three-day trading week.
- The Financial Services Industry led the activity chart, contributing 69.07 per cent and 43.26 per cent to total equity turnover volume and value respectively.
- Thirty-four equities appreciated in price during the week, fifty-one equities depreciated, and sixty-one equities remained unchanged.
Main Story
Highcap Securities Ltd. has projected improved trading activity on the Nigerian Exchange Ltd. (NGX) in the coming week. The Vice Chairman of Highcap Securities, Mr David Adonri, attributed the outlook to the return of the market to a full five-day schedule after a holiday-shortened trading week.
The NGX All-Share Index and market capitalisation appreciated by 0.27 per cent to close the week at 250,385.47 points and N160.509 trillion, respectively.
This compares with 249,712.37 points and N160.077 trillion recorded in the previous week, translating to a weekly gain of N432 billion for investors. Meanwhile, investors traded 2.398 billion shares worth N111.480 billion in 241,313 transactions during the week.
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This contrasts with 3.875 billion shares valued at N161.757 billion exchanged in 334,745 deals in the previous week. Consequently, the value of transactions declined by 31 per cent. The market operated for only three trading days during the week as the Federal Government declared May 27 and May 28 public holidays for the 2026 Eid-el-Kabir celebration.
Speaking with NAN on Saturday in Lagos, Adonri expressed satisfaction with the market’s performance in spite of the shortened trading week. He said trading volume and value were expected to normalise with the resumption of a full trading week.
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Analysis of trading showed that the Financial Services Industry led the activity chart with 1.656 billion shares valued at N48.229 billion traded in 94,812 deals.
This contributed 69.07 per cent and 43.26 per cent to the total equity turnover volume and value respectively. The Services Industry followed with 265.448 million shares worth N4.530 billion traded in 19,443 deals.
The ICT Industry came third with 101.848 million shares valued at N9.163 billion exchanged in 24,858 transactions. Trading in the shares of Fidelity Bank Plc, Access Holdings Plc and The Initiates Plc accounted for 903.681 million shares worth N19.227 billion in 22,238 deals.
The Issues
- Recovering from a 31 percent drop in aggregate transaction value caused by a holiday-shortened three-day trading schedule.
- Absorbing mixed sectoral performance, as supply and demand pressures slightly weakened banking, industrial, and consumer goods indices.
- Navigating external macroeconomic pressures such as broad money supply, inflation rate fluctuations, and foreign exchange movements.
What’s Being Said
- Explaining how specific corporate spaces anchored the bourse’s positive index closure despite drops in overall transactional volume, David Adonri noted: “The equities market on the NGX appreciated by 0.27 per cent this week, driven mainly by the oil and gas and insurance sectors.”
- Outlining how reduced operational time frames compressed market liquidity while alternative trading options maintained steady interest, Adonri stated: “All other sectors declined, while aggregate transaction value dropped due to the fewer trading days during the week. Overall market performance remained positive. All sectors were active, including the bonds market, which was also appreciated. Demand for Exchange Traded Funds (ETFs) remained strong, while supply and demand pressures weakened the banking, industrial and consumer goods sectors slightly,”
- Detailing how upcoming corporate earnings releases could support the continuous upward rally of major listed companies, he added that “the oil and gas sector could sustain its rally if Aradel releases a strong full-year result.”
- Identifying the traditional sectors that are expected to consistently retain the interest of market participants in the subsequent trading cycles, Adonri remarked: “As usual, banking and consumer goods stocks will continue to attract investor attention,”
What’s Next
- Trading volume and value are expected to normalize on the NGX with the resumption of a full five-day trading week.
- Market analysts will track upcoming corporate disclosures from companies like Aradel and Presco to evaluate their immediate impact on trading activities.
- Investors will monitor broader macroeconomic indicators, including foreign exchange movements, inflation rates, and broad money supply.
Bottom Line
Despite a 31 percent drop in transaction value due to public holidays, the NGX All-Share Index gained 0.27 percent to close at 250,385.47 points, prompting Highcap Securities to project a normalization of trading volumes and sustained momentum in the oil, gas, and insurance sectors as a full five-day schedule resumes.
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