Investors Trade N52.97bn In Equities As Market Records Higher Volume

The Nigerian Exchange Limited (NGX) recorded a significant uptick in trading activity during the trading week, as total turnover surged to 2.094 billion shares valued at N52.97bn in 64,612 deals, marking a substantial rise from the 1.183 billion shares worth N28.87bn exchanged in 42,397 deals the previous week.

Despite the increased trading volume and value, the market ended the week on a bearish note. The benchmark NGX All-Share Index (ASI) depreciated by 0.90 per cent to close at 104,563.34 points, while the overall market capitalization fell by 0.67 per cent to N65.707tn.

A broader review of the market indices revealed that most sectors closed in the red. Notably, the NGX Growth Index and the NGX Sovereign Bond Index emerged as the only gainers, appreciating by 0.37 per cent and 3.42 per cent, respectively. The NGX ASeM Index remained flat throughout the week.

The financial services sector dominated trading activity, accounting for the bulk of transactions by both volume and value. A total of 1.539 billion shares worth N36.35bn were traded in 36,013 deals, representing 73.49 per cent and 68.63 per cent of the total equity turnover volume and value, respectively.

The agriculture sector followed, with 98.88 million shares valued at N1.34bn exchanged in 2,772 deals, while the services sector placed third with 93 million shares worth N522.15m across 3,012 deals.

Trading in three leading banking stocks — Access Holdings Plc, Guaranty Trust Holding Company Plc (GTCO), and Zenith Bank Plc — significantly contributed to overall market activity.

The trio recorded a combined turnover of 629.33 million shares worth N25.82bn in 12,742 deals, representing 30.06 per cent of the total trading volume and 48.75 per cent of the total transaction value for the week.

Investor sentiment during the week was relatively mixed but tilted toward the negative. A total of 27 equities appreciated, an improvement over 23 gainers in the previous week. However, the number of decliners rose to 56, up from 51 the week before.

Meanwhile, 64 equities remained unchanged, down from 73 equities that held their prices steady in the prior week.

Market analysts suggest that while increased trading volume indicates heightened investor participation, the persistent decline in key indices reflects ongoing caution driven by macroeconomic uncertainties, including inflation concerns and interest rate outlooks.

Investors Trade N52.97bn In Equities As Market Records Higher Volume is first published on The Whistler Newspaper