KEY POINTS
- NGX market capitalisation rose by N160 billion to N157.747 trillion.
- All Share Index gained 0.10 per cent to 243,299.24 points.
- Market activity fell in volume and value despite an increase in transactions.
- NGX Group and Royal Exchange posted the strongest gains at 10 per cent each.
MAIN STORY
The Nigerian Exchange opened the week higher on Monday, adding N160 billion to investors’ wealth as the market extended its winning streak to three consecutive sessions.
Market capitalisation rose from N157.587 trillion at the start of trading to N157.747 trillion at the close, while the All Share Index advanced 246.50 points to 243,299.24.
The 0.10 per cent rise lifted the market’s Year to Date return to 56.35 per cent.
The upward movement was supported by buying interest in Royal Exchange, NGX Group, RT Briscoe, Secure Electronic Technology and Prestige Assurance, among other stocks.
NGX Group and Royal Exchange topped the gainers with 10 per cent increases, closing at N162.80 and 99k per share respectively.
RT Briscoe rose 9.88 per cent to N8.90, while Secure Electronic Technology gained 7.69 per cent to close at 70k. Prestige Assurance also advanced 7.19 per cent to N1.49.
The positive index performance, however, masked a weaker breadth as 28 stocks declined against 21 gainers.
John Holt recorded the biggest decline, falling 10 per cent to N8.10. Ellah Lakes and Daar Communications each lost 9.80 per cent to close at N9.20 and N1.38 respectively.
Regency Alliance Insurance declined 8.97 per cent to 71k, while Learn Africa shed 8.67 per cent to finish at N7.90.
Trading activity was mixed, with the volume and value of transactions declining despite a higher number of deals.
A total of 428.97 million shares valued at N20.52 billion changed hands in 54,592 deals, compared with 582.89 million shares worth N25.79 billion traded in 45,678 transactions on Friday.
Sterling Nigeria accounted for the largest share of the day’s volume, with 78.05 million shares representing 18.20 per cent of total trading activity.
Aradel Holdings recorded the highest transaction value at N2.48 billion.
THE ISSUES
- The market’s continued gains are being driven by selective buying rather than broad based strength, as the number of declining stocks remained higher than gainers.
- The fall in traded volume and value suggests that Monday’s positive index movement was achieved on lighter market activity compared with the previous session.
- The rise in the number of transactions despite lower traded volume and value points to more fragmented trading activity during the session.
- The market’s 56.35 per cent Year to Date return shows the strength of its overall performance, although the uneven movement across individual stocks remains a key feature of current trading.
WHAT’S NEXT
Investors will be watching whether the market can sustain its three session advance and whether broader participation improves in subsequent trading sessions.
BOTTOM LINE
The NGX extended its positive run with a N160 billion increase in market capitalisation, but the gains were not broadly shared across listed stocks. Lower trading volume and value also showed that the advance came amid softer overall market activity.
