NGX market value rises N437bn as equities extend recovery despite IPO concerns
Nigeria’s equities market extended its recovery on Friday, September 11, as investors pushed the Nigerian Exchange (NGX) All-Share Index higher for a second consecutive session, adding about N437.4 billion to total market capitalisation.
The benchmark index gained 0.28% to close at 243,052.74 points, compared with 242,378.13 points recorded in the previous session. Market capitalisation consequently increased from N157.15 trillion to N157.59 trillion.
The latest advance followed a more modest recovery of about N100 billion on Thursday, bringing the market’s year-to-date return to 56.19%.
Broader market participation
Unlike earlier sessions that were largely driven by a handful of large-cap stocks, Friday’s recovery featured broader participation.
A total of 31 stocks appreciated, while 18 declined, indicating a significant improvement in market breadth.
Abbey Mortgage Bank and UPDC REIT emerged as the strongest performers, each gaining 10% to close at N7.15 and N13.75 respectively. Omatek Ventures rose 9.60%, while Consolidated Hallmark Insurance advanced 9.06% to N6.50. Chams Holdings completed the top five gainers with an 8.90% increase.
On the losing side, John Holt fell 10% to N9.00, followed by Austin Laz & Company, which declined 9.55%. Royal Exchange lost 9.09%, while UPDC and NSL Technologies fell 5.88% and 4.41% respectively.
NGX Group leads large-cap gains
Among the major stocks, NGX Group recorded the strongest performance, rising 8.03% to N148.00.
eTranzact also gained 8.79% to close at N13.00, while Oando continued its recent upward run with a 5.92% increase to N34.00.
The banking sector also contributed to the recovery. Access Holdings gained 3.57%, UBA rose 1.94%, and Zenith Bank advanced 0.64%. Meanwhile, Stanbic IBTC Holdings declined 1.58%, while Transcorp fell 1.59%. MTN Nigeria and GTCO were broadly flat.
Banking, insurance and consumer stocks recover
Sector performance was largely positive during the session.
The NGX Banking Index increased to 2,528.80 points from 2,510.84 points, while the NGX Insurance Index climbed to 1,059.16 points from 1,038.76 points.
The Consumer Goods Index also advanced to 4,048.07 points, while the Oil/Gas Index edged up to 5,817.36 points.
The Industrial Index, however, was virtually unchanged, slipping marginally to 9,994.79 points.
Trading activity slows
Despite the improvement in prices, trading activity weakened considerably.
Total volume dropped 60.48% to 552.89 million shares, compared with 1.40 billion shares traded on Thursday. Market turnover also fell 4.99% to N25.79 billion, while the number of deals declined slightly to 45,678.
The sharp fall in volume followed an unusually high level of activity recorded on Thursday, which was attributed largely to transactions involving FTGINSURE.
Dangote Refinery IPO could test recovery
Despite the two-day rebound, investors remain cautious as the market approaches the commencement of the Dangote Refinery IPO.
The subscription window is scheduled to open on September 14, raising the possibility that some investors could sell existing positions, particularly in the banking and insurance sectors, to free up funds for the new offering.
The market is also approaching another significant development, with Nigeria’s reclassification to Frontier Market status by FTSE Russell scheduled to take effect on September 21.
These developments could increase volatility in the coming sessions as investors reposition their portfolios.
For now, the NGX has managed to recover some ground following Wednesday’s sharp N1.67 trillion sell-off. The key question for investors is whether the latest rebound represents the beginning of a sustained recovery or simply a temporary pause before renewed selling pressure emerges.
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