Trading activity on the Nigerian Exchange Limited (NGX) weakened significantly this week as investors exchanged 5.359 billion shares worth N139.05bn in 261,869 deals, representing a sharp decline in turnover value compared with the previous week.
According to the NGX weekly market report, investors traded 5.119 billion shares valued at N404.76bn in 285,223 deals in the preceding week.
The latest figures show that although equity trading volume increased by 4.7 per cent week-on-week, the total value of transactions plunged by 65.6 per cent, while the number of deals also declined by 8.2 per cent.
Despite the weaker trading value and breadth of market activity, the benchmark NGX All-Share Index (ASI) rose by 0.12 per cent during the week to close at 245,573.60 points, while the total market capitalisation increased by 0.12 per cent to N158.513 trillion.
The modest gain in the benchmark index indicates that buying interest in selected large-cap stocks was sufficient to keep the broader market in positive territory, even as overall investor participation weakened.
Financial Services Lead Trading Activity
The Financial Services Industry remained the dominant segment of the market, accounting for the largest share of equity turnover during the week.
The sector recorded 3.469 billion shares valued at N73.01bn in 117,509 deals, representing 64.73 per cent of total equity turnover volume and 52.51 per cent of total turnover value.
The Oil and Gas Industry ranked second, with 1.023 billion shares worth N18.900 billion exchanged in 17,680 deals.
The ICT Industry occupied third place, recording a turnover of 232.368 million shares valued at N14.62bn in 31,866 deals.
The concentration of trading in the financial services sector underscores the continued dominance of banking and other financial stocks in overall market activity, particularly in terms of volume.
Japaul Gold, Fortis Global Insurance, FCMB Drive Volume
Three equities, Japaul Gold & Ventures Plc, Fortis Global Insurance Plc and FCMB Group Plc accounted for a substantial proportion of total market volume during the week.
The three stocks jointly recorded 2.562 billion shares worth N14.17bn in 6,645 deals.
Their combined turnover represented 47.80 per cent of total equity trading volume and 10.19% of total equity turnover value.
The significant contribution of these stocks to overall market volume suggests that trading activity remained concentrated in a relatively small number of equities, even as the broader market recorded mixed price movements.
Market Breadth Weakens
Market breadth also deteriorated during the week, with more equities recording losses than gains.
A total of 26 equities appreciated in price, down from 33 gainers recorded in the previous week.
In contrast, 63 equities declined in price, compared with 56 losers in the preceding week, while 58 equities closed unchanged, the same number recorded in the previous week.
The increase in the number of decliners relative to gainers points to a more cautious trading environment, despite the marginal rise in the benchmark index.
Most Indices Post Gains
The positive performance of the NGX All-Share Index was supported by gains across most of the market’s sectoral and thematic indices.
However, nine indices closed lower during the week.
The NGX Main Board Index declined by 0.83 per cent, while the NGX Insurance Index recorded the largest decline among the affected indices, falling by 3.31 per cent.
The NGX Consumer Goods Index dropped by 1.75 per cent, while the NGX Oil & Gas Index declined marginally by 0.03 per cent.
The NGX Lotus II Index fell by 0.46 per cent, the NGX Industrial Goods Index declined by 0.17 per cent, and the NGX Growth Index shed 2.14 per cent.
Similarly, the NGX Sovereign Bond Index declined by 0.09 per cent, while the NGX Commodity Index slipped by 0.01 per cent.
Despite these declines, the overall market remained positive, with the ASI advancing 0.12 per cent to close at 245,573.60 points and market capitalisation rising to N158.51tn.
The mixed performance of sectoral indices and the widening gap between gainers and losers suggest that the week’s marginal benchmark gain was driven by selective buying rather than broad-based market appreciation.
(The Whistler)