Investors Portfolio Value Soars By N347 Billion As FCMB Lists On NGX

Stock Exchange Closes Trading Week With N30bn Gain

The Nigerian equities market witnessed a significant surge in investors’ portfolio value, increasing by over N347 billion following the listing of FCMB Group’s public offer on the Nigerian Exchange (NGX). This positive momentum coincides with the release of fourth-quarter corporate earnings for 2024, further driving investor sentiment.

Market Performance Overview

Trading activities on the local bourse closed on a positive note as key performance indicators advanced by 19 basis points, reflecting renewed investor interest in growth and value stocks. The NGX All-Share Index (ASI) climbed by 0.19% to settle at 104,744.43 points, while the overall market capitalization surged by 0.54%, driven in part by FCMB’s listing.

According to analysts at Atlass Portfolios Limited, the disparity in performance indicators can be attributed to the inclusion of FCMB Group Plc’s public offer on the exchange, adding fresh liquidity and boosting overall market valuation.

Investor Sentiment and Stock Performance

Investor confidence remained robust, sustaining the previous day’s bullish trend. Increased buying interest in mid- and large-cap stocks such as Honeywell Flour Mills (HONYFLOUR) and Vitafoam (VITAFOAM) contributed to the market’s positive trajectory. With more companies disclosing their financial statements, traders are positioning themselves for potential gains.

Despite the overall bullish trend, market activities were somewhat mixed. The total volume of traded shares rose by 17.96%, indicating heightened trading activity. However, the total value of transactions declined by 21.04%, suggesting that investors focused more on volume accumulation rather than high-value transactions.

Market Activity Breakdown

A total of 497.36 million shares, valued at N11.84 billion, were exchanged in 13,716 transactions. FBN Holdings (FBNH) led the volume chart, contributing 16.75% of the total shares traded. Other notable volume drivers included Veritas Kapital Assurance (VERITASKAP) at 8.05%, Universal Insurance (UNIVINSURE) at 5.40%, Fidelity Bank (FIDELITYBK) at 4.99%, and FCMB Group (FCMB) at 4.53%.

In terms of value, FBNH also dominated the chart, accounting for 20.43% of the total transaction value. Meanwhile, Chellarams (CHELLARAM) and Honeywell Flour Mills (HONYFLOUR) emerged as top gainers, both appreciating by 10.00%.

Other notable gainers included:

  • Northern Nigeria Flour Mills (NNFM) (+9.98%)
  • Red Star Express (REDSTAREX) (+9.89%)
  • Sky Aviation (SKYAVN) (+9.89%)
  • Enamelware Plc (ENAMELWA) (+9.84%)
  • Vitafoam (VITAFOAM) (+9.83%)

Decliners and Market Breadth

Despite the overall positive market performance, some stocks experienced price declines. Guinea Insurance (GUINEAINS) led the losers’ chart with a 10.00% depreciation. Other decliners included:

  • Veritas Kapital Assurance (VERITASKAP) (-9.30%)
  • Ikeja Hotels (IKEJAHOTEL) (-6.87%)
  • Aradel Holdings (ARADEL) (-4.16%)
  • Neimeth Pharmaceuticals (NEIMETH) (-2.41%)
  • Access Holdings (ACCESSCORP) (-1.50%)

The market breadth remained positive, with 38 stocks appreciating in value compared to 26 decliners.

Sectoral Performance

Sector-wise, three out of the five major sectors recorded gains, reinforcing the market’s positive outlook:

  • Industrial Goods Sector: Led the gainers with a 1.16% increase.
  • Consumer Goods Sector: Advanced by 0.90%.
  • Insurance Sector: Notched a modest gain of 0.24%.

Conversely, the Banking Sector and Insurance Sector recorded declines of 0.47% and 1.19%, respectively.

Conclusion

Overall, the Nigerian equities market posted a stellar performance, with its market capitalization swelling by N347.31 billion to close at N64.87 trillion. The positive sentiment was largely fueled by FCMB Group’s public offer listing and strong investor appetite for select stocks. With corporate earnings releases ongoing, the market’s trajectory remains promising, offering potential opportunities for strategic investors.