NGX gains N3bn despite cautious investor trading

The Nigerian Exchange Limited closed the first weekday of trading on a modest positive note, gaining about N3bn as investors adopted a cautious stance amid mixed sentiment across sectors.

Market capitalisation edged up to about N95.3tn, while the All-Share Index (ASI) inched higher by 4.62 points to close at 149,437.88, reflecting mild buying interest despite weaker market turnover.

A total of 553.16 million shares valued at N13.27bn were traded in 28,888 deals, representing a three per cent decline in trading volume and a 54 per cent drop in turnover compared with the previous session.

However, the number of deals rose by 42 per cent. Analysts said the subdued activity suggested investors were selective, positioning cautiously amid ongoing portfolio rebalancing and profit-taking in some large-cap stocks.

Market breadth closed positive, with 28 equities recording price appreciation against 23 decliners, while the rest of the listed stocks closed flat. Sovereign Trust Insurance Plc led the gainers’ chart with a 10 per cent increase to close at N3.74 per share.

It was followed by Guinness Nigeria Plc, which advanced by 9.96 per cent to N239.50; MeCure Industries Plc, up by 9.88 per cent to N41.70; and First HoldCo Plc, which gained 9.86 per cent to close at N34.55. AIICO Insurance Plc and Alex Industries Plc also recorded notable gains during the session.

On the losing side, Prestige Assurance Plc topped the decliners’ table after shedding 10 per cent to close at N1.53 per share. FTN Cocoa Processors Plc declined by 8.16 per cent to N4.50, while Guinea Insurance Plc lost 7.69 per cent to close at N1.08.

Royal Exchange Plc fell by 7.25 per cent to N1.79, while Nigerian Breweries Plc declined by 6.86 per cent to close at N76.75, reflecting profit-taking in selected stocks.

Sectoral performance was mixed, as gains in the banking and insurance indices helped support the broader market, while slight losses were recorded in some industrial and consumer goods counters.

The Banking Index rose by 0.89 per cent, while the Insurance Index appreciated by 0.87 per cent. In contrast, the Top 30 Index dipped marginally by 0.08 per cent, reflecting sell pressure in some heavyweight stocks.

In terms of activity, FCMB Group Plc emerged as the most traded stock by volume, with 92.04 million shares exchanged, followed by Access Holdings Plc with 67.93 million shares.

Consolidated Hallmark Holdings Plc recorded 50.78 million shares traded, while Fidelity Bank Plc and Jaiz Bank Plc also featured among the most active stocks. By value, Vitafoam Nigeria Plc led transactions, followed by Access Holdings Plc, GTCO Plc, First HoldCo Plc and FCMB Group Plc.

Market analysts noted that the modest gain of about N3bn underscored cautious investor sentiment, driven by mixed macroeconomic signals and expectations around corporate earnings and policy direction.

They added that while the market remained fundamentally strong, near-term trading might continue to be influenced by profit-taking and selective positioning until clearer catalysts emerge.

Overall, the slight uptick in the ASI and market capitalisation suggested underlying resilience in the equities market, even as investors traded with restraint.

The PUNCH reported that investors on the floor of the Nigerian Exchange Limited traded a total of 4.373 billion shares valued at N97.783bn in 110,736 deals last week, reflecting a slowdown compared with the preceding week when 6.617 billion shares worth N113.224bn were exchanged in 109,590 deals.

Despite the lower volume, the market recorded significant gains, as the ASI and market capitalisation appreciated by 1.63 per cent and 1.64 per cent to close the week at 149,433.26 points and N95.264tn, respectively.