NGX Opens Week on Bullish Note as Market Capitalisation Rises by N160bn

The Nigerian equities market opened the new trading week on a positive note on Monday, with gains recorded in Nestlé Nigeria Plc and 19 other listed companies pushing the total market capitalisation higher by approximately N160 billion.

The benchmark All-Share Index rose by 246.50 points, representing a 0.10 per cent gain, to close the trading session at 243,299.24 points.

Consequently, the total market capitalisation increased from N157.587 trillion at the previous close to N157.747 trillion.

The upward movement was largely supported by price gains recorded among several medium- and large-capitalised companies, including Nestlé Nigeria Plc, Nigerian Exchange Group Plc, FBN Holdings Plc, Custodian Investment Plc and Dangote Sugar Refinery Plc.

However, despite the increase in the overall market value, trading sentiment remained relatively weak, as more stocks recorded losses than gains during the session.

Market breadth closed with 28 decliners against 19 advancers, reflecting continued caution among investors.

Royal Exchange Plc and Nigerian Exchange Group Plc emerged as the best-performing stocks for the day, with each gaining 10 per cent. Royal Exchange closed at 99 kobo per share, while Nigerian Exchange Group ended trading at N162.80 per share.

RT Briscoe Nigeria Plc also recorded strong buying interest, rising by 9.88 per cent to close at N8.90 per share. Secure Electronic Technology Plc gained 7.69 per cent to close at 70 kobo, while Prestige Assurance Plc appreciated by 7.19 per cent to finish at N1.49 per share.

On the other hand, John Holt Plc recorded the largest decline among the listed equities, losing 10 per cent to close at N8.10 per share.

DAAR Communications Plc and Ellah Lakes Plc followed on the losers’ chart, with both stocks declining by 9.80 per cent. DAAR Communications closed at N1.38 per share, while Ellah Lakes ended the session at N9.20.

Regency Alliance Insurance Plc fell by 8.97 per cent to close at 71 kobo, while Learn Africa Plc declined by 8.67 per cent to settle at N7.90 per share.

Trading activity also weakened compared with the previous session. Total volume traded dropped by 22.4 per cent to 428.97 million shares, with the transactions valued at N20.52 billion.

The trades were executed in 54,592 deals.
Sterling Financial Holdings Company Plc led the volume chart, with 78.05 million shares changing hands in transactions valued at N588.87 million.

Mutual Benefits Assurance Plc followed with 42.11 million shares worth N118.14 million, while Chams Holding Company Plc recorded 28.50 million shares valued at N98.42 million.

Fidelity Bank Plc traded 25.84 million shares valued at N497.82 million, while Access Holdings Plc recorded 21.58 million shares worth N613.81 million.

The mixed performance of individual stocks, coupled with the decline in trading volume, suggests that investors remain cautious in the market. Nevertheless, the modest increase in the All-Share Index and the N160 billion rise in market capitalisation provided a positive start to the week for the Nigerian Exchange.

Market participants will now be watching subsequent trading sessions closely to determine whether the positive momentum can be sustained or whether profit-taking and continued investor caution will put pressure on equities.

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